Keppel Land at home in Hanoi

The Hanoi Westgate development marks Singapore’s Keppel Land residential development debut in the north

A source from the Hanoi Municipal Department of Planning and Investment said Keppel Land had completed procedures for establishing a joint venture with the Vietnamese-owned FBS Company – a subsidiary of Gami Group, for developing Hanoi Westgate urban project.

The Singaporean property developer will hold a 60 per cent stake in the joint venture. Sources close to the project said Keppel Land and FBS would take over 50 years to fully develop the Hanoi Westgate, while the value of the giant development had yet to be announced.

FBS first started work on the project in 2008. The project covers 52.52 hectares along Thang Long Boulevard, about 20 kilometres from the centre of Hanoi. FBS has also developed a series of urban projects in Danang, Thai Binh, Phu Yen and Phu Tho.

The anonymous source added that the project was likely to mirror Keppel Land’s residential projects in Singapore, Indonesia or the Sino-Singapore Tianjin Eco-City in China.

The green-focused project is likely to suit Hanoi’s plan for developing more environmentally friendly developments, such as Quoc Oai town, which was announced by the Hanoi Municipal People’s Committee in July last year. This so-called ‘ecological’ town will covers an area of 900ha, aiming to boost the development of a green belt surrounding Hanoi.

Hanoi Westgate is Keppel Land’s first urban residential project in Hanoi, even though the company has invested in three office buildings and serviced apartment projects in the capital already. The move highlights Keppel Land’s expansion strategy and long-term confidence in Vietnam, despite the largely stagnant property market.

Keppel Land, a subsidiary of Singapore’s Keppel Corporation, is among the largest property developers in Singapore. With a strong reputation, the engagement of Keppel Land in Hanoi Westgate will significantly bolster the prestige of the project.

Keppel Land has invested in Vietnam since the 1990s through a partnership with the Book Distribution Company under the Ministry of Culture and Information in the construction of the business-orientated International Centre Building in Hanoi.

Keppel Land currently has 18 licensed projects with a combined total investment capital of about $2 billion and about 22,000 homes in the pipeline in Vietnam. Those include the Saigon Centre, Villa Riviera, Riviera Cove, The Estella, South Rach Chiec, Saigon Sports City and Dong Nai Waterfront City.

In an interview with VIR in August, Linson Lim, president of Keppel Land in Vietnam, said the company remained confident about Vietnam’s property market.

“The fundamentals of the country have not changed and foreign investors will continue to look to Vietnam or expand their presence here. This is where Keppel Land, with our reputation as one of Vietnam’s leading property developers with a strong track record in quality properties, will meet the demand for investment-grade office buildings and superior homes,” said Lim.