Keppel to sell 70% stake in Vietnam township project for about $101m

Dong Nai Waterfront City LLC. Source: Keppel Land

Singapore-based developer Keppel Land (KLL) is divesting a 70 per cent interest in a township in Vietnam to Nam Long Investment Corporation for a consideration of VND2,313 billion (approximately S$136 million), according to a release.

KLL, through its wholly-owned subsidiary Portsville Pte. Ltd, is currently in the process of taking over complete control of Dong Nai Waterfront City LLC.

Dong Nai Waterfront City, jointly held by KLL and a joint venture partner, is undergoing a demerger upon the issuance of a Investment Registration Certificate by the relevant Vietnamese authorities.

The project has been granted the right to develop a township on 170 hectares of land in Dong Nai Province in Vietnam. Dong Nai Waterfront City also currently holds a 28 ha plot of land which is excluded from the proposed divestment, said the company.

The proposed divestment is in line with KLL’s strategy to recycle assets to seek higher returns. The funds generated from the divestment will be used to pursue other opportunities in Vietnam, the Singapore-based developer stated in the release.

Keppel Land will retain a 30 per cent stake in Dong Nai Waterfront City after the sale of the 70 per cent stake to Nam Long.

The consideration will be paid in tranches. The unaudited net asset value attributable to the sale stake was approximately S$57 million as at December 31, 2018.

Last July, Keppel Corporation sold Orbista Pte. Ltd, a wholly-owned subsidiary of Keppel Land Limited, for $30 million. Orbista owned 15 per cent stake of Vietnamese property developer Quoc Loc Phat Joint Stock Company (QLP).

Earlier, KLL through its wholly-owned subsidiary Oil (Asia) Pte Limited, acquired the remaining 10 per cent stake in Jencity Limited, which holds Saigon Sports City, for approximately $11.4 million.

Saigon Sports City is a township developed by Keppel Land in collaboration with Keppel Urban Solutions in District 2, Ho Chi Minh City with a total investment capital of $500 million.

Nam Long Investment Corporation develops real estate properties in Vietnam. The company develops land banks and housing projects. It is also involved in the management and exploitation of commercial real estate properties.

The developer last year conducted an auction off 40 million shares, equivalent to 21.2 per cent of its outstanding shares to raise capital.

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