Keppel Land’s subsidiary exits Vietnamese joint venture

April 05, 2016 | 16:29

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Singaporean developer Keppel Land Ltd’s subsidiary, Palmsville Investment Pte Ltd, has sold the 70 per cent stake it had in the joint venture Quang Ba Royal Park Joint Venture Company Ltd to BRG Group Joint Stock Company for VND492 billion ($22 million), subject to post-closing adjustment.

According to a press release posted on April 4 on the website of Keppel Corporation, of which Keppel Land Ltd is a subsidiary, the consideration was arrived at on a willing buyer willing seller basis taking into account the future business prospects of Quang Ba Royal Park as well as the unaudited book value and unaudited net tangible assets attributable to the sale stake as of March 31, 2016.

“The divestment is in line with Keppel Land Ltd’s strategy to continually recycle assets for higher returns,” the release said.

Quang Ba Royal Park is the joint venture between Hanoi Trade Union Tourism Co., Ltd and Palmsville Investment Pte Ltd. It owns and operates a serviced apartment block named Sedona Suites Hanoi at Quang Ba, Wang An Ward, Tay Ho District in Hanoi, Vietnam.

Sedona Suites Hanoi, completed in 1998, comprises 155 apartments and 20 villas with comprehensive clubhouse facilities. According to Keppel Land Ltd.’s 2014 financial statement, as of end-February 2015, 87 per cent of the serviced apartments at Sedona Suites Hanoi have been leased.

In Vietnam, Keppel Land has a diverse portfolio of properties in Hanoi, Ho Chi Minh City, Dong Nai and Vung Tau comprising offices, residences, serviced apartments and integrated townships. According to Keppel Corp’s 2015 financial statements, Vietnam is its second largest overseas residential market after China.

By By Ha Duy

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