Singapore-based marine, oil and infrastructure conglomerate Keppel Corporation has announced that it would sell Orbista Pte. Ltd, a wholly-owned subsidiary of Keppel Land Limited, for $30 million, according to an announcement.
The move is a part of its full divestment in Vietnamese property developer Quoc Loc Phat Joint Stock Company (QLP) that had been earlier announced in June.
QLP, which held 15 per cent stake by Orbista, is the officially appointed developer of a property located in Ho Chi Minh City, Vietnam.
“Following the Orbista divestment, Orbista will cease to be a subsidiary of KLL and KLL will cease to have any interest in QLP,” Keppel said in the announcement.
The corporation also said that the sale of Orbista is in line with the Keppel Land’s strategy to recycle assets to seek higher returns. It is expected to be completed in the third quarter of 2018.
The Singapore-based developer Keppel Land, which has held 45 per cent stake in QLP through Orbista, was looking to sell a 30 per cent stake in the Vietnamese developer for VND702 billion ($30.8 million), and to offload its remaining 15 per cent stake at a later stage, according to a Keppel Corporation’s disclosure in June.
Keppel has been ramping up investments in emerging countries in the region, including Indonesia and Vietnam.
In Vietnam, Keppel Land is one of the largest and pioneer foreign real estate developers with a diverse portfolio of 20 licensed projects across Hanoi, Ho Chi Minh City, Dong Nai and Vung Tau provinces including Grade A offices, residential properties, retail centers, integrated townships and award-winning serviced apartments.
In March, Keppel Land 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.