Keppel inks joint venture with CT Properties

With a total development cost of about S$70 million, Keppel does not expect significant earnings from the joint venture.

According to a release by Keppel Land Limited, the company has entered into a conditional joint venture agreement with CT Properties Ltd, a leading property developer in Sri Lanka, to develop about 260 high-end condominium residences on a 1.25-acre (about 0.5-ha) prime site in Colombo, the commercial capital of Sri Lanka.

Here's more from Keppel:

The JV will develop about 260 high-end residences in the affluent Kotahena district in Colombo

Keppel Land and CT Properties will hold 60:40 equity respectively in the joint venture company. The total development cost for the project is estimated to be about S$70 million (about US$55.2 million).

Mr. Kevin Wong, Group CEO of Keppel Land, said, "Our first foray into Sri Lanka is strategic and timely given the country's positive growth as well as with growing affluence amongst its population. The improved political and economic conditions also bode well for the country as it looks to attract more foreign direct investments."

Targeted at the well-heeled, the development is located north of Fort, the central business district (CBD) of Colombo. It is also well-connected via major roads and will provide residents easy and direct access to the CBD. The Kotahena area, where the new development is sited, is well-served by numerous amenities including schools, retail outlets, banks, medical facilities as well as sports and entertainment centres. The majority of homes are also expected to enjoy panoramic views of the Indian Ocean.

The above transaction is not expected to have any significant impact on the net tangible asset per share or earnings per share of Keppel Land for the current financial year.