Keppel said this development is a pilot programme that will be developed in phases.

Keppel will build a social housing project of about 1, 800 apartments and then transfer it to the city.

In return, the city will assign to Keppel a 30-ha cleared site, located at South Rach Chiec in District 2, which is zoned for waterfront development.

The waterfront township is envisioned to be sustainable and a vibrant community comprising about 4, 700 homes and with a potential gross floor area of about 1 million sq m.

Keppel said there is a growing middle-class segment in the city who has become more discerning in their choice of residences and where they set up their businesses.

“Our new township will allow us to tap on our experience to masterplan and develop a desirable live-work-play environment and lifestyle for our residents,” Ang Wee Gee, executive director and chief executive officer (International) for Keppel Land International Limited, said in a statement.

Keppel said it was able to leverage its reputation in Vietnam and its strong relationships with local authorities and strategic partners to secure another large site to meet demand for its homes and build up its quality portfolio.

The first phase of this development is expected to be launched in 2011.

South Rach Chiec is a prime area which enjoys more than 2km of river frontage and 8km away from the Central Business District (CBD).

Travelling time to the CBD will be reduced to less than 15 minutes upon completion of the Thu Thiem Tunnel, East-West Highway and HCMC-Long Thanh Expressway.

Both expressways are currently under construction over the next two years.

This project is Keppel Land’s third township in Vietnam and is also the second collaboration between Keppel Land and Tien Phuoc.

Both developers first collaborated for a 1, 393-unit condominium development project called The Estella, also in District 2.

Flemmington Investments’ 42 percent stake in the project amounts to US$16.0 million of the total registered capital of $38 million, while local partners Tien Phuoc and Tran Thai hold the remaining 38 percent and 20 percent respectively.

Meanwhile, Keppel said its other waterfront villa development in Vietnam, Riviera Cove, has seen 80 percent of 60 select launched villas taken up within a month of its launch in mid-November last year.

The villas are selling for an average price of about $680, 000 per unit.

The remaining units will be progressively launched in the first quarter of 2010.