Sembcorp Industries on Friday signed a conditional joint venture agreement with Japan's Nishi-Nippon Railroad (NNR) for the development of a residential project in Vietnam.
The agreement was signed by Sembcorp's joint venture company, Vietnam
Singapore Industrial Park and Township Development Joint Stock Co (VSIPJSC), it said in a statement.
NNR is a subsidiary of Tokyo stock exchange listed company Nishitetsu Group, a conglomerate with business activities in transportation and logistics as well as real estate.
VSIP JSC will hold 30 percent of the joint venture company to be formed for the residential development while the remaining will be held by NNR.
The residential development comprises landed houses and shophouses for sale with clubhouse amenities.
VSIP JSC is co-owned by lead shareholders Sembcorp Development, a wholly-owned company of Sembcorp Industries, and Vietnam state-owned enterprise Becamex IDC Corporation. Sembcorp Development's effective interest in VSIP JSC is 45.2 percent.
The joint venture is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending December 31, 2017, Sembcorp said.