Singapore's Keppel Land said Tuesday a subsidiary and its local partner have secured a licence to build a residential apartment bloc in Vietnam's Ho Chi Minh City.
The joint venture between the wholly owned subsidiary, Keppel Land Estate Pte Ltd, and local developer Tien Phuoc Co Ltd, is expected to further boost he Singapore firm's foothold in Vietnam's booming property market. Total investment capital for the project, called The Estella, is estimated at 106 million US dollars, Keppel Land said in a statement. Keppel Land Estate will take up 55 percent of the joint venture while Tien Phuoc Co Ltd will own the rest.
Vietnam's ministry of planning and investments awarded the licence to go ahead with development of the 4.8 hectare (11.86-acre) project, Keppel Land said.
"In line with Keppel Land's overseas strategy to tap on the demand for quality housing in Asia's growth cities, the company continues to leverage its first mover advantage and build on its strong presence and portfolio in Vietnam," said the firm's managing director Kevin Wong. The development is expected to yield 1,500 apartments in an area popular with upper income Vietnamese and expatriates.
It will include a clubhouse, a swimming pool, tennis courts, lush surroundings and round-the-clock security. Sales will begin in the fourth quarter of this year. Keppel Land has announced other prime residential and township developments in Ho Chi Minh City, Hanoi and Dong Nai province in recent months.
Vietnam has emerged from the scars of the Vietnam War to become one of the fastest growing nations in the developing world. It's economy grew nearly 8.2 percent last year, one of the fastest in Asia, and is expected to expand 8.5 percent this year.