SEA Digest: CapitaLand buys Vietnam site for $720m; Keppel, KIT invest in European wind farms

Wind farm

CapitaLand Development is acquiring a mixed-use site in Ho Chi Minh City for $720 million, while Singapore’s Keppel Corp and Keppel Infrastructure Trust (KIT) are investing in European onshore wind farm projects.

CapitaLand buys site in Vietnam for $720m

CapitaLand Development (CLD) is acquiring a mixed-use site in Ho Chi Minh City for $720 million. The transaction is expected to close in the fourth quarter of 2023.

The total gross development value of the project is $1 billion, and will be home to 1,100 high-end residential units and shophouses. CapitaLand is expected to break ground on the project in 2024 and complete it in three years.

The project in Thu Duc City will augment CLD’s residential portfolio in Vietnam which currently comprises 13,000 units across 17 properties, said CEO Ronald Tay.

Vietnam is one of Capitaland’s core markets. In 2018, the real estate giant set up its second commercial fund in the country, CapitaLand Vietnam Commercial Value-Added Fund (CVCVF), which closed at $130 million.

In December 2021, CapitaLand Development had acquired a land fund in Binh Duong to develop a project of more than 3,700 apartments and houses, with a total development value of about $800 million.

In June last year, The Ascott Limited (Ascott), a wholly-owned lodging business unit of CapitaLand, entered into agreements to acquire two properties in Paris and Hanoi for about S$210 million ($156.2 million). The transaction was made through the Ascott Serviced Residence Global Fund (ASRGF), Ascott’s private equity fund with Qatar Investment Authority.

Keppel, KIT to invest in European onshore wind farms

Singapore’s Keppel Corp and Keppel Infrastructure Trust (KIT) will jointly invest 160 million euros ($161 million) for a 33% stake in FundCo, a joint investment vehicle, which will then invest in European wind farm projects.

Norwegian pension fund Kommunal Landspensjonskasse (KLP) and MEAG Munich Ergo AssetManagement GmbH (MEAG) will also commit 160 million euros for a 33.33% stake in FundCo.

FundCo will buy stakes in a portfolio of existing and future onshore wind energy assets across Norway, Sweden, and the UK.

It will pick up a 49% stake in three operational wind farms in Sweden and Norway, with a total generating capacity of 258 megawatts. The rest will be held by Olsen Renewables AS (Foras), a Norwegian renewable energy developer. FundCo will further have a five-year exclusive right and obligation to co-invest in 49% of all Foras’s eligible pipeline of onshore wind energy assets in Sweden and the UK.

The transaction will mark Keppel Corporation’s expansion in the wind energy business and will contribute to Keppel’s Vision 2030 plan to grow the group’s renewable energy assets.

Keppel Corporation is one of Singapore’s flagship multinational companies with a global footprint in more than 20 countries. Keppel provides solutions for sustainable urbanisation, focusing on four key areas comprising energy & environment, urban development, connectivity and asset management.

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