Keppel Land, via its subsidiary Krystal Investments, has acquired an additional 16 percent stake in the joint venture (JV) entities for Saigon Centre (pictured) in Ho Chi Minh City from its Vietnamese partner for 845.9 billion Vietnamese dong (approx. S$53.5 million).
With the acquisition, Keppel Land has increased its aggregate stake in the JV companies for Phases One and Two of Saigon Centre from 45.3 percent to 53.5 percent, and its aggregate stake in the JV companies for subsequent phases of Saigon Centre from 68 percent to 76.2 percent.
Situated on a two-hectare prime site, Saigon Centre is being developed in phases.
Phase One comprises a 25-storey office tower that was completed in 1996. It is 100 percent leased, with tenants including Reuters, DBS Bank, Mitsubishi Corporation and AIG.
Phase Two, on the other hand, will comprise 55,000 sq m of retail space, 44,000 sq m of Grade A office space and 195 luxury serviced apartments. The retail mall was opened in August last year.
“Keppel Land is committed to grow its commercial portfolio in key Asian cities. Vietnam, one of our key growth markets, continues to attract foreign direct investments which will drive positive demand in the property market from homes to offices and mixed-use developments,” said Keppel Land CEO, Ang Wee Gee.
“Our increased stake in Saigon Centre reflects Keppel Land’s confidence and long-term commitment to contribute to sustainable urbanisation in Vietnam with our quality portfolio of properties.”
Keppel Land does not expect the transaction to significantly affect its earnings per share and net tangible assets per share for the current financial year.
Image source: Keppel Land
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg