KEPPEL Land and Saudi Arabian wealth management company Saudi Economic and Development Co (Sedco) will invest $760 million to jointly develop about 1,000 luxury apartments in Jeddah, Saudi Arabia, the two companies said yesterday.

KepLand will hold a 51 per cent stake in the project, with an investment cost of $387.6 million. Sedco will own the other 49 per cent.

The development, on a 3.6 ha site along the corniche waterfront in Jeddah, will comprise three high-rise towers with sea-facing apartments.

Development will be undertaken in phases according to demand. The project will target high-end buyers and is expected to be launched in 2008.

'We are excited that our first foray into Saudi Arabia is a landmark waterfront development in Jeddah,' said Kevin Wong, KepLand's managing director.

'This development will enable Keppel Land to quickly establish its track record and open other opportunities in Saudi Arabia and other fast-growing markets in the Middle East.'

Located on the west coast of Saudi Arabia by the Red Sea, Jeddah, with a population of 3.4 million, is the gateway to the two holy mosques of Makkah and Medinah.

The development site is a five-minute drive from Red Sea Mall - a 240,000 sq m shopping mall being developed by Sedco and other partners, which will be the largest retail hub in Saudi Arabia when completed at end-2007.

'With strong economic growth and accelerated economic reforms in Saudi Arabia, Jeddah has enjoyed high growth in the real estate sector in recent years,' said Ang Wee Gee, KepLand's director for regional investments.

KepLand's shares closed five cents lower at $7.70 yesterday. The company's stock has climbed 11.6 per cent so far this year.