Keppel Land has entered into joint ventures (JV) with Vietnamese developers, Tien Phuoc Company Limited (Tien Phuoc) and Hung Phu Real Estate Corporation (Hung Phu), to develop two prime sites in Ho Chi Minh City (HCMC).

The first agreement seals the collaboration between Keppel Land, through wholly-owned subsidiary, Antiaris, and Tien Phuoc for the development of a 13.5-ha waterfront site in HCMC.

Comprising 225 villas, the gated development with 24-hour security will feature recreational facilities such as a club house, a gymnasium, a swimming pool, a tennis court and a children’s playground.

This will be Keppel Land’s fourth partnership with Tien Phuoc. Both Antiaris and Tien Phuoc will take equal stakes of the total development cost (TDC) of about US$115 million ($149.4 million).

The second agreement between Keppel Land, through Belwynn, and Hung Phu is for the development of a 9.8-ha site into a gated villa development along Rach Chiec River.

The proposed development, located just 500 metres from Riviera Cove, Keppel Land’s second deluxe villa residential development in HCMC, is envisioned to provide about 150 premier homes.

Under the arrangement, Belwynn will take up 60% stake of the US$65 million TDC while Hung Phu will subscribe for the remaining interest. This is Keppel Land’s second collaboration with Hung Phu.

Upon the issuance of the investment certificates and relevant government approvals, both villa developments are expected to launch their first phases in fourth quarter of 2011.

These new villa developments, targeted at the upper-middle to high-income segment, will be Keppel Land’s fourth and fifth landed waterfront properties in HCMC. The first, Villa Riviera, located in District 2, saw all 101 units sold within a year of its launch in 2006. More than 90% of the 88 launched units at the 96-villa Riviera Cove has also been taken up. The third waterfront villa development, which was secured early this year, will commence sales in 2011.

The above transactions are not expected to have any significant impact on the net tangible asset per share or earnings per share of Keppel Land Group for the financial year ending 31 December 2010.