Keppel Land’s waterfront projects gets green light

KeppelLand’s waterfront projects - illustration photo

The Singaporean developer announced its wholly-owned subsidiary Flemmington Investment Pte together with local Tien Phuoc Company and Tran Thai Co Company have obtained master plan approval for the integrated waterfront residential development site.

This is the key milestone to kickstart the development of a prime 30-hectare cleared site in South Rach Chiec, district 2 of Ho Chi Minh City as it maps out the planning parameters for the design of the project.

"We are building on our experience and Keppel Land's good reputation for quality homes amongst local homebuyers and are confident that this integrated waterfront residential development in South Rach Chiec will be received positively," said Linson Lim, president of Keppel Land International Limited in Vietnam, Thailand and the Philippines.

The waterfront development will comprise about 6,430 homes supported by quality retail, commercial, educational and medical facilities with a total gross floor area of about one million square metres.

The first phase of the development, of approximately 1,500 waterfront apartment units, is targeted to be launched in 2012.

The site in South Rach Chiec enjoys more than two-kilometers of combined river frontage to the Giong Ong To River and Muong Kinh River. Travelling time to the central business district will be reduced to less than 15 minutes upon completion of the Thu Thiem Tunnel and East-West Highway in 2011 as well as the upcoming Ho Chi Minh City-Long Thanh Expressway.

In exchange for the 30-ha cleared waterfront site, Keppel Land and its joint venture partners have handed over 500 homes to the Ho Chi Minh City People's Committee under a public-private initiative to build a resettlement housing project in a separate location in the An Phu-Binh Khanh Ward in District 2.The remaining 1,300 homes will be delivered over the next two years.

This is the first public-private housing collaboration with a foreign investor. When completed, the housing project will provide over 1,800 homes for residents who have been resettled from the Thu Thiem area.

"Keppel Land is committed to nurturing communities wherever it operates. We are privileged to be able to participate in this meaningful collaboration between the public and private sectors to enhance the quality of life in District 2," said Lim.

The South Rach Chiec development is the second collaboration between Keppel Land and Tien Phuoc, the first being The Estella, a 1,393-unit condominium development also in district 2.

The above transaction is not expected to have any significant impact on the net tangible asset per share or earnings per share of Keppel Land for the financial year ending 31 December 2011.

Keppel Land is one of the largest foreign real estate investors in Vietnam. The firm has a quality portfolio of properties in Hanoi, Ho Chi Minh City, Dong Nai and Vung Tau ranging from grade A offices, residential properties, integrated townships to award-winning serviced apartments. To-date, the company has a pipeline of about 22,000 homes in Vietnam.

In Ho Chi Minh City, Keppel Land is currently developing Riviera Point, a 2,400-unit waterfront integrated lifestyle development with both residential and retail facilities in district 7, and The Estella, a prime 1,393-unit condominium development in district 2.