Keppel Corporation Ltd. (Keppel) and Keppel Vietnam Fund (KVF), jointly known as the Keppel Consortium, have entered into binding agreements to acquire a 49 per cent interest in two adjacent residential projects in Thu Duc City from the Khang Dien Group for an aggregate consideration of approximately $138 million.
The shareholding ratio between Keppel and KVF, one of Keppel’s private funds, in the Keppel Consortium is 50-50.
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Khang Dien Group, an established developer in Vietnam listed on the Ho Chi Minh Stock Exchange, will hold the remaining 51 per cent interest and jointly develop these projects with the Keppel Consortium.
This marks the second joint investment by Keppel and KVF, following the acquisition of three residential land sites in Hanoi in 2022.
The Keppel Consortium and Khang Dien Group plan to jointly develop a total of more than 200 landed homes and more than 600 high-rise apartments on the two sites, which have a total land area of about 11.8 hectares.
The total development cost for the projects, inclusive of land, is expected to be around $443 million. The necessary developmental approvals, including the master plan and land use right certificates for the two sites, have been obtained.
According to Joseph Low, president of the Vietnam Real Estate Division at Keppel, this joint strategic acquisition with KVF in Ho Chi Minh City is in line with Keppel’s asset-light business model under its Vision 2030 and enables it to tap into third-party funds for growth.
|“We are pleased to partner with Khang Dien Group, a leading real estate company in Vietnam. As Keppel continues to expand our presence in the nation, we look forward to collaborating with like-minded partners to offer our suite of sustainable urban space solutions and further contributing to the country’s sustainable development,” Low said. |
Chairwoman of Khang Dien Mai Tran Thanh Trang shared that, as a listed corporation, Khang Dien always focuses on improving the value and benefits for shareholders, partners, and customers.
“We believe that Keppel's combination of experience in developing quality real estate worldwide and its commitment to long-term investment in Vietnam, along with Khang Dien's market understanding and operating principles based on sustainable development, will create breakthrough housing projects and urban areas, improve the quality of life for residents, bring practical value to the community, and contribute to the sustainable development of the economy,” Trang said.
Keppel’s Real Estate Division has been active in Vietnam since the early 1990s. Over three decades, Keppel has grown with the nation to become one of the largest foreign real estate investors in the country today.
In Vietnam, Keppel is well known for its quality residential developments, such as Estella Heights, Celesta Rise and Empire City, as well as Grade A commercial developments like the Saigon Centre in Ho Chi Minh City.
The aforementioned transactions, which are slated to be completed in 2023, are not expected to have any material impact on the earnings per share and net tangible asset per share of Keppel Corporation Ltd. in the current financial year, the company claimed.
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