SINGAPORE - Keppel Land said on Thursday that it is moving to the next phase of developing a 37-storey office tower in mixed-used development Saigon Centre Phase Two in Ho Chi Minh City.

The 42-storey Saigon Centre Phase Two will comprise 40,000 square metres (sqm) of premium Grade A office space, five levels of 50,000 sqm of retail space, and some 200 luxury serviced apartment units.

The retail podium is under construction and has a pre-commitment of about 40 per cent.

Anchor tenant Takashimaya will house its first department store in Vietnam, in the retail podium, taking up about 15,000 sqm of space.

Phase Two's total investment will be about US$255 million.

Saigon Centre Phases One and Two are jointly owned by Keppel Land, Toshin Development, and its Vietnamese partners Southern Waterborne and Transportation Corporation and Saigon Real Estate Corporation.

Mr Linson Lim, Keppel Land's president for Vietnam said: "In tandem with Keppel Land's strategy to actively recycle capital and further expand its commercial portfolio, we are advancing with the development of Saigon Centre Phase Two to meet the demand for prime office and retail space in Ho Chi Minh City."