SINGAPORE (Nov 23): Keppel Land, the property arm of Keppel Corporation, has entered into a conditional joint venture agreement with Thai property developer KPN LAND Co. to acquire two separate prime sites in Bangkok for a total of 2.2 billion baht ($90 million).

The joint venture partners plan to be develop two premium freehold condominiums projects on these sites, both located along Sukhumvit Road.

The partners will jointly manage the two developments, with Keppel Land holding a 49% stake in the condominium projects, and KPN LAND holding the remaining 51% stake.

Keppel Land’s share for the total development cost for both projects is estimated to be around 2.8 billion baht.

The first site, which spans about 1,600 sqm, is located in a prime residential enclave on Sukhumvit soi 19, near the Asoke commercial area. Landmarks in the vicinity include the Terminal 21 shopping mall as well as five-star hotels such as Westin Grande Sukhumvit and Sheraton Grande Sukhumvit.

The proposed development, a 24-storey condominium tower, will comprise approximately 140 units with a net saleable area of about 8,000 sqm.

The second site, spanning about 3,200 sqm, is located in a well-established residential district on Sukhumvit soi 28, in close proximity to the EmQuartier and Emporium shopping malls.

It will be developed into a 30-storey, 265-unit condominium tower with a net saleable area of about 16,000 sqm.

The two developments will offer luxury apartments in one- and two-bedroom configurations.

Construction for both developments is expected to commence around 3Q18.

“We continue to seek opportunities in the Bangkok real estate market and are confident of the potential of Thailand’s property market, especially in Bangkok, which is benefitting from increasing urbanisation, a growing middle class as well as improving infrastructure,” says Keppel Land CEO Ang Wee Gee.

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

Shares of Keppel Corp closed 6 cents higher at $7.59 on Thursday.