Following the acquisition, Keppel Land has increased its total interest in the joint ventures developing the first and second phases of the Saigon Centre, namely Keppel Land Watco I, II and III, from around 45.3% to 53.5%, and the last two phases in Keppel Land Watco IV and V from 68% to 76.2%, according to a statement issued on March 20 by Keppel Land.

Ang Wee Gee, CEO of Keppel Land, said in the statement, “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. Our increased stake in Saigon Centre reflects Keppel Land’s confidence and long-term commitment to contribute to sustainable urbanization in Vietnam with our quality portfolio of properties.”

Sowatco, one of two Vietnamese partners in the project, sought approval from its shareholders to sell its entire stake last April. The stake sale plan was unveiled in a report posted on its website and meant to be presented at the firm’s 2016 annual shareholder meeting that month.

At the time, market watchers predicted Keppel Land would be most likely to purchase the stake as it was one of the dominant foreign real estate developers in Vietnam.

The Saigon Centre is situated on two hectares of land in a prime location surrounded by Le Loi, Nam Ky Khoi Nghia and Pasteur streets in District 1, with Keppel Land Watco being the owner. Sowatco owned around 16% of the joint venture and the remainder was held by Saigon Real Estate Corporation and Singapore’s Keppel Land.

The Saigon Centre is within walking distances from two underground metro stations under construction near two of the city’s landmarks – the Ben Thanh Market and the Opera House.

The first phase of the Saigon Centre was put into use in 1996. The second phase, designed by New York-based NBBJ, comprises 55,000 square meters of prime retail space, 44,000 square meters of premium Grade-A office space, and 195 luxury serviced apartments when fully completed at the end of this year.

A shopping mall in the Saigon Centre was launched last August, stocking over 400 international and local brands. Leading Japanese department store chain operator Takashimaya is among its tenants.

In Vietnam, Keppel Land is one of the largest foreign real estate investors with a diverse portfolio of properties in Hanoi, HCMC, Dong Nai and Vung Tau, such as Grade A offices, high-end residential properties, mixed-use urban areas, and serviced apartments.

The company has 19 licensed projects with more than 25,000 homes in the pipeline across the country.

Source: thesaigontimes.vn