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Keppel Land ups stake in Vietnam housing project

Keppel Land said on Monday it has increased its share of a joint venture housing project in southern Vietnam by buying a 43 per cent effective stake in the project's phase two and three development.

SINGAPORE: Keppel Land said on Monday it has increased its share of a joint venture housing project in southern Vietnam by buying a 43 per cent effective stake in the project's phase two and three development.

The Singapore developer will pay around US$11.5 million to raise its stake in the remaining phases of the Estella -- a high-rise residential development with a retail component -- to 98 per cent from 55 per cent.

Tien Phuoc Co, the joint venture partner, will see its share of the project drop to 2 per cent from 45 per cent previously.

The Estella is a residential development comprising more than 1,500 apartments that is located in the An Phu Ward in District 2 of Ho Chi Minh City.

Phase 1 has been completed, with 719 units that have been fully sold and handed over to home buyers. There is also a final batch of nine penthouse units which was recently released for sale.

Mr Linson Lim, Keppel Land's president for Vietnam, said the firm was confident about the long-term growth potential of Vietnam's property market, due to the country's young population and growing middle-class.

Ho Chi Minh City's high urbanisation rate, improving infrastructure and declining interest rates will also support demand for housing, he added.

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