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Tag: keppel land

  • Keppel to sell 70 pct stake in Vietnam waterfront township

    Keppel to sell 70 pct stake in Vietnam waterfront township

    Singapore-based Keppel Corp will sell 70 percent stake in a waterfront township project to a Vietnamese investor for $100 million. The company said in a release Monday that, pending certain developments, it will sell its stake in the Dong Nai Waterfront City Company (DNWC) to Ho Chi Minh City-based Nam Long Investment Corp for VND2.31 trillion ($99.72 million).

    The DNWC is a company incorporated under Vietnam’s laws that has been granted the right to develop the Dong Nai Waterfront City township project.

    Keppel Land, Keppel’s real estate arm, is currently in the process of taking over complete control of DNWC from an unnamed joint venture partner through a demerger.

    Once the demerger is done, DNWC will become a wholly-owned subsidiary of Keppel with the rights to develop a 170-hectare plot of land.

    DNWC also holds a 28-hectare plot of land which is excluded from the proposed divestment.

    The 70 percent stake sale will depend on demerger going through.

    Dong Nai Waterfront City is a 170-hectare residential township project in Dong Nai Province, located 28 kilometers to the northeast of HCMC.

    It will have about 7,850 homes, including townhouses, villas and high-rise apartments with various commercial facilities.

    Keppel Corp said that the stake sale was in line with Keppel Land’s strategy to recycle assets for higher returns. The funds generated will be used to pursue other opportunities in Vietnam, it said.

    The Dong Nai Waterfront City will be Keppel Land’s second township project in Vietnam after the 64-hectare Saigon Sports City in HCMC’s District 2 which is under construction.

  • Keppel in joint venture for first commercial development in India

    Keppel in joint venture for first commercial development in India

    Keppel Land, the property subsidiary of Singaporean conglomerate Keppel Corporation, is in a partnership to develop its first commercial property in India.

    The group has acquired a well-located 3.09ha site from Metro Cash & Carry India in Yeshwanthpur through a majority 51:49 joint venture with Indian property developer Puravankara.

    The total consideration of INR 4.05 billion (US$81 million) includes the cost of $16 million for the construction of a 160,000sqft retail/office complex. The total development cost, including the land, is $207.4 million.

    Yeshwanthpur is 5km northwest of central Bangalore, one of the primary hubs for the technology industry in India. The area is among the largest and fastest-growing office markets in the country.

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  • Keppel Land China, Alpha divest stakes in Sparkle Bright for $516.9m

    Keppel Land China, Alpha divest stakes in Sparkle Bright for $516.9m

    Keppel Land China Ltd and Alpha Investment Partners Ltd (Alpha) have divested their 80 per cent stake in Sparkle Bright Holdings Limited (Sparkle Bright) for  $516.9 million.

    Keppel Land China and Alpha signed an agreement with Star Champ Development Ltd, a wholly-owned subsidiary of the Chongbang Group (Chongbang), for the transaction.

    Sparkle Bright owns retail mall Life Hub @Jinqiao (Life Hub), a mixed-use development in Shanghai, China. Chongbang owns the other 20 per cent stake in the development.

    Keppel Land China holds a 42.5 per cent interest, while Alpha Asia Macro Trends Fund II and a co-investor hold the remaining 57.5 per cent in the 80 per cent stake in Sparkle Bright.

    Keppel Land China and Alpha are wholly-owned subsidiaries of Keppel Land Limited and Keppel Capital Holdings, respectively.

    Life Hub features about 114,730 sm gross floor area of retail shops spread over 10 low-rise retail buildings as well as a 10-storey office tower with a retail podium. It has been one of the popular attractions in Shanghai’s Pudong District since 2009.

    The retail mall is currently 97 per cent leased while the office tower is fully occupied.

    The divestment is expected to be completed by the end of September 2016. The Group expects to recognise a gain of approximately S$73 million from the divestment.

    Keppel Land CEO Ang Wee Gee said the divestment is in line with Keppel Land’s strategy to continually recycle assets to seek higher returns.

    “Keppel Land China’s collaboration with Alpha reflects how different business units are working closely together to harness the collective strengths of the Keppel Group,” Gee said.

    Since the acquisition of the property in 2013, Keppel Land China and Alpha have been working with the mall operator to continuously enhance the tenant mix and shopping experience.

    Christina Tan, CEO of Keppel Capital and managing director of Alpha, disclosed they have been able to realise an internal rate of return of over 20 per cent on the sale of the development.

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  • Keppel Land opens mall in Ho Chi Minh City

    Keppel Land opens mall in Ho Chi Minh City

    Property firm Keppel Land opened a mall in Ho Chi Minh City yesterday as part of plans to increase its presence in Vietnam.

    The mall in Saigon Centre has 55,000 sq m of retail space and is already fully leased with over 400 international and local brands, the firm said.

    They include anchor tenant Takashimaya, the Japanese retail giant, which has taken up 15,000 sq m for its flagship store, its first outlet in the city.

    keppel land

    Takashimaya Singapore managing director Tatsuo Yano said: “This development has come about through years of cultivated retail experience between Japan and Singapore. We aim to create a store that will become a well-soughtafter shopping destination.”

    The mall is part of Saigon Centre’s phase two development, which also includes 195 luxury serviced apartments and a 37-storey prime office tower. Phase two – which will be completed at the end of next year – will cost US$255 million (S$341 million) to develop.

    Keppel Land, a subsidiary of Keppel Corporation, told The Straits Times that future phases could include a five-star hotel and more retail offerings.

    Phase one, which included 11 floors of Grade A office space and 89 luxury serviced apartments, was completed in 1996.

    Keppel Land said 97 per cent of the office space in phase one was leased, with DBS Bank, AIG, Reuters and Mitsubishi Corporation among the tenants.

    Both phases one and two of the project are jointly owned by Keppel Land, Toshin Development and Vietnamese partners Southern Waterborne and Transportation Corporation and Saigon Real Estate Corporation. Keppel Land holds a 45.3 per cent stake in the development.

    Since its first foray into Vietnam in the early 1990s, Keppel Land has 19 licensed projects across the country.

    The mall’s opening ceremony yesterday was attended was attended by over 300 guests, including Keppel Corporation chairman Lee Boon Yang.

    Keppel Land will also joint develop Empire City at a prime 14.6ha waterfront site in Ho Chi Minh City – a deal announced in March.

    The development will comprise premium residential units, office and retail properties as well as an 86-storey integrated mixed-use tower complex.

    Empire City – which is expected to commence construction later this year – is a joint venture project with Vietnamese companies Tien Phuoc Real Estate Joint Stock Company and Tran Thai Real Estate, as well as Hong Kong-based real estate private equity fund Gaw Capital Partners.

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  • Keppel Reit divests Sydney property for $160 million

    Keppel Reit divests Sydney property for $160 million

    Keppel Reit has divested its 100% interest in 77 King Street in Sydney, Australia to ARE Noble Pty Ltd, a wholly-owned subsidiary of Invesco Asia Core Fund for A$160 million (S$160 million), resulting in a divestment gain of A$28 million (S$28 million).

    77 King Street is located within Sydney’s CBD, and has 147,000 sq ft of net lettable area over 18 levels of offices and two basement levels of retail space. The sale price is 40% above Keppel Reit’s original purchase price of A$116 million at end 2010, and a 27% premium over the property’s latest valuation of A$126 million.

    Following the divestment of 77 King Street, Keppel Reit will still have four premium grade office buildings in Australia, comprising a 50% interest in 8 Chifley Square in Sydney; 275 George Street in Brisbane; the office towe and annex at the Old Treasury Building site in Perth; as well as 8 Exhibition Street, with two retail units and a 100% interest in its three adjoining retail units in Melbourne.

  • Keppel Land FY2015 net profit jumps 45% yoy to $701 million

    Keppel Land FY2015 net profit jumps 45% yoy to $701 million

    Keppel Land’s full year net profit jumped 45% to $701 million from $482 million a year ago. Full year revenue for FY2015 rose 11% to $1.9 billion from $1.7 billion a year ago.

    The group sold about 4,570 homes, double the units taken up in 2014. About 3,280 of the units sold in FY2015 were in China, with another 930 in Vietnam, 190 in Singapore, and 130 in Indonesia. Property prices in China’s first-tier cities continue to rise strongly with high absorption rate and falling stock.

    Keppel Land says it will continue to tap demand in recovering property markets across Asia. It currently has about 20,000 launch-ready homes in its portfolio, mostly in China. It will also develop its commercial portfolio which has increased to 9.04 million sq ft of gross floor area (GFA), with some coming on stream over the next two years. In Vietnam, Keppel Land’s Saigon Centre Phase 2 retail mall in Ho Chi Minh City has achieved pre-commitment of 97.5% and will open in 3Q2016. The anchor tenant is Takashimaya Department Store. In Myanmar, Keppel Land’s new 29-storey Inya Wing hotel has opened, adding another 431 guest rooms and suites, along with an exclusive retail gallery at Hotel Sedona Yangon.

    In Singapore, Keppel Land just added 112 Katong to its commercial property portfolio with its acquisition of a 22.4% interest announced last week. The remaining 77.6% interest in 112 Katong is held by its property fund management arm, Alpha Investment Partners (AIP). Keppel Land Retail Management has been appointed as the retail manager. The property fund portfolio managed by Keppel Reit and AIP rose 10% y-o-y to $20.5 billion in FY2015 from $18.7 billion in FY2014.

    Keppel REIT’s portfolio of office buildings in Singapore and Australia continues to maintain a high occupancy of 99.3%. Meanwhile, Alpha’s Asia Macro Trends Fund II has invested in three prime office properties with City Developments Ltd. With the success of the first two Asia Macro Trends Funds, it will be embarking on its third fund in the series.

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  • Keppel Land acquires 22.4% interest in 112 Katong

    Keppel Land acquires 22.4% interest in 112 Katong

    Keppel Corp’s property arm Keppel Land has acquired a 22.4% interest in 112 Katong Mall from BHG Holdings, Imagine Properties and Perennial Singapore Investment Holdings for $51.4 million in cash. The remaining 77.6% stake is held by a fund managed by Alpha Investment Partners, Keppel Land’s property fund management vehicle.

    Perennial Real Estate’s stake in the mall amounts to 1.46% or $3.4 million. Along with the divestment of its stake in the asset, Perennial Real Estate is also selling its 23% stake in the trust manager of I12 Katong Mall for $1 a share. A Perennial-led consortium had purchased the former Katong Mall for $247.55 million in November 2009. The mall underwent a $70 million asset enhancement exercise that increased its net lettable area by 20% to 206,000 sq ft today.

    “The investment in 112 Katong will add to our quality portfolio of retail and mixed use developments,” said Ang Wee Gee, CEO of Keppel Land in a statement. “We will focus on strengthening the mall’s positioning as a lifestyle and dining destination in the East.”

    Following the acquisition, the mall will be managed by Keppel Land Retail Management headed by Michael Leong, a property veteran with 30 years’ experience in the retail sector. Leong was the former CEO of Array Real Estate, in which Keppel Land acquired a 75% stake in December 2014. Array’s Leong was previously executive director of Guthrie GTS, and over the years, has been instrumental in the development and mall management of 3 million sq ft of retail properties in Singapore such as Jurong Point Shopping Centre, Heartland Mall, Century Square, Tampines One and Tiong Bahru Plaza.

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