SINGAPORE (Dec 18): Keppel Corporation’s property arm, Keppel Land, has entered into an agreement with leading Indonesian property developer PT Metropolitan Land Tbk (Metland) to jointly develop a 12-hectare residential site in the Metland Menteng township in East Jakarta, Indonesia.

The agreement, made through wholly-owned subsidiary, PT Sukses Manis Indonesia, will see Keppel Land hold a 50% stake in the joint operation, which will yield approximately 500 landed homes with ancillary shophouses for sale.

Keppel Land’s share of the total development cost for the project is estimated to be about 600 billion rupiah ($57 million).

The partners will jointly manage the project, which will be developed in phases.

Keppel Land and Metland had earlier signed an agreement to collaborate on residential projects owned and occupied by Metland in Greater Jakarta.

This latest project will be Keppel Land and Metland's second joint operation project.

The first devlopment – The Riviera at Puri, a gated riverfront landed estate in Tangerang, Greater Jakarta, comprising about 500 landed homes – is almost 90% sold as at end-November 2018.

“Indonesia is one of Keppel Land’s key markets and we are committed to grow our presence in the country with a focus on Greater Jakarta. We are confident that Indonesia, with its steady economic growth, continued urbanisation as well as growing middle-class, will continue to see demand for high-quality homes, says Goh York Lin, President (Indonesia), Keppel Land.

“We are excited to deepen our partnership with Keppel Land for this second landed housing project. The upcoming development is strategically located with easy access to the Jakarta central business district and amenities such as hospitals and schools, as well as myriad lifestyle offerings,” says Thomas J Angfendy, President Director of Metland.

Located in a mature residential precinct with several landed housing township developments, the site enjoys excellent connectivity to Jakarta’s city centre and is a 60-minute drive away from The Soekarno-Hatta International Airport.

Keppel Corp says the transaction is not expected to have any material impact on its net tangible assets and earnings per share for the current financial year.

Shares in Keppel Corp closed 1.5% lower at $6.01 on Tuesday.