Keppel transfers its stakes in Empire City

The transaction is expected to be completed by the fourth quarter of this year.

Empire City LLC was established to develop a waterfront site in the Thu Thiem New Area in Ho Chi Minh City, comprising residential and mixed-use developments named Empire City.

Under the agreement, Keppel will divest 20 per cent equity interest in Empire City to Denver Power Vietnam Co., Ltd., a wholly owned subsidiary of Denver Power Ltd, and the other 20 per cent equity interest to Golden Axis Co., Ltd., which is 99.99 per cent owned by Tran Thai Lands Co., Ltd. and Tien Phuoc Real Estate JSC^.

The purchasers will pay over three tranches, with the last to be paid upon receipt of authorities’ approval for registration of the equity transfer.

The aggregate consideration was arrived at on a willing-buyer, willing-seller basis, taking into account, among others, the adjusted net asset value of the 40 per cent stake, based on the agreed value of the Empire City attributable to the 40 per cent stake, which was approximately $267 million as of August 3.

According to Lee Kok Chew, head of Keppel’s Accelerating Monetisation Task Force, the divestment of Empire City, which will realise $267 million in cash this year, reflects Keppel’s concerted efforts to unlock value from non-core assets, as it advances the company’s growth as an asset-light global asset manager and operator.

“With approximately $1.6 billion of monetisation announced year-to-date, we have achieved our target of $2 to $3 billion for 2026. Looking ahead, we will continue to pursue further opportunities to realise value from our $13.7 billion non-core portfolio by end-2030, releasing substantial cash that can be used to invest in higher-return growth opportunities, reduce debt and reward shareholders,” Chew said in his statement.

The completion of the divestment is subject to the satisfaction of conditions precedent, including obtaining authorities’ approval for registration of the equity transfer.

The aforementioned transaction is not expected to have any material impact on the net tangible asset per share or earnings per share of Keppel Ltd. for the current financial year, it cited.

Empire City is one of the largest real estate developments in Thu Thiem – the new financial hub of Ho Chi Minh City, with a total investment of approximately $1.2 billion.

According to the master plan, the 14.5-hectare project is located along the Saigon River and is being developed into a mixed-use complex comprising a shopping centre, a 5-star hotel, office space, high-end residential apartments, and an international-standard underground parking system. The project has a total gross floor area of around 730,000 sq.m.

The centrepiece of the development is an 88-storey mixed-use tower, which was once expected to become Vietnam's tallest building.

However, the project has been largely stalled including the tower since 2019 due to the developer's failure to fulfil additional financial obligations required under the conclusions of the government inspectorate.

Empire City is a high-end residential and mixed-use development located in Thu Thiem New Area. Photo: Le Toan

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