Keppel Land has entered into a conditional joint venture agreement with Thai property developer KPN LAND Co., Ltd (KPN LAND) to acquire two prime sites in Bangkok for a total amount of 2.2 billion baht (S$90.6 million).
The partners, which intend to develop two premium freehold condominium projects on the sites, will jointly manage the projects. Keppel Land will own a 49 percent stake in the two projects, while the remaining 51 percent will be held by KPN LAND.
Keppel Land’s share for the total development cost of the two projects is estimated to be about 2.8 billion baht (S$115 million).
Located within a prime residential enclave on Sukhumvit soi 19, the first site, which spans around 1,600 sq m, will be developed into a 24-storey condominium tower comprising 140 units with a net saleable area of around 8,000 sq m.
The second site, on the other hand, is located within a well-established residential district on Sukhumvit soi 28 and spans around 3,200 sq m. It will be developed into a 30-storey condominium tower featuring 265 units with a net saleable area of around 16,000 sq m.
In an SGX filing, Keppel Land revealed that the two projects will “offer luxury apartments in one- and two-bedroom configurations”.
“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, all of which support the demand for quality lifestyle projects with strong attributes and value offerings located in Bangkok’s CBD,” said Keppel Land CEO Ang Wee Gee.
Construction works for both developments is set to begin around the third quarter of 2018.
This article was edited by Keshia Faculin.