Keppel Corp and Keppel Vietnam Fund to take stake in two residential projects near Ho Chi Minh City

The Keppel Consortium, a joint venture between Keppel Corporation and Keppel Vietnam Fund (KVF), has entered into binding agreements to acquire a 49% stake in two adjacent residential projects in Thu Duc City, Ho Chi Minh City, Vietnam. The two sites, which have a total land area of 11.8 hectares, are planned to be jointly developed by both Keppel and Khang Dien Group, to include more than 200 landed homes and 600 high-rise apartments.

The shareholding ratio of the Keppel Consortium between Keppel and KVF will be 50/50. 51% of the consortium will be owned by the Khang Dien Group, a Vietnam-based company listed on the Ho Chi Minh Stock Exchange. The total development cost inclusive of land cost for the projects is expected to be around VND10,200 billion, or around $600 million. The necessary developmental approvals have already been obtained.

In 2022, Keppel Land, KVF and another co-investor acquired three residential land sites in Hanoi with the plans to develop around 1,260 homes. KVF was established as a joint venture between Keppel Land and Keppel Capital, and targeted a fund size of US$600 million with assets under management of US$1 billion.

In May 3, Keppel Corporation restructured its conglomerate structure to form a simplified horizontally integrated model comprising of Fund Management, Investment and Operating Platforms. The corporation stated an interim AUM target of $100 billion and a cumulative asset monetisation target of $10-$12 billion, both by end-2026.

The Myst Condo promises to be an attractive residential option as it is situated in an area with plenty of amenities; nearby shopping malls, schools, parks and recreational facilities are all within easy reach. CDL has indicated that the project will feature many facilities such as a rooftop swimming pool, a gymnasium, a function room, a clubhouse and lush landscaping. The Myst Condo is set to be a luxury development with a contemporary design.

These strategic acquisitions and partnerships come at a time when global real estate investors are beginning to eye more ASSETS in the Asia-Pacific, including Vietnam. With Keppel’s significant investments in the residential projects in Ho Chi Minh City, the group is continuing to drive the urbanisation and development of sustainable urban developments in Vietnam.