Keppel Corporation, together with Keppel Vietnam Fund (jointly, the Keppel Consortium), have signed contracts that are binding to purchase by the Khang Dien Group a 49% stake in two adjoining residential developments located in Thu Duc City in Ho Chi Minh City, Vietnam, for VND3,180 billion ($187.1 million). Keppel Corporation and the Keppel Consortium and Khang Dien Group intend to develop together over 200 landed houses as well as more than 600 apartments in the two sites with an area of approximately 11.8 acres.
Hillock Green at Lentor Central is part of the new Lentor Hills Estate, is nestled in Ang Mo Kio Planning Area, an area largely comprised of private housing.
The ratio of shareholding among Keppel and KVF one of Keppel’s funds that are private, within the Keppel Consortium is 50-50. It is the Khang Dien Group, which is a well-established developer in Vietnam that is listed in the Ho Chi Minh Stock Exchange holds all the other 51% stake. The total cost of development for the project which includes land costs is anticipated to be in the region of VND10,200 billion, or roughly 600 million dollars. The necessary approvals for development have been granted the announcement from Keppel states.
The year 2022 will see Keppel Land, KVF and a co-investor of KVF bought the residential property of three sites in Hanoi where the Group will build approximately 1,260 houses.
The KVF is a joint venture of Keppel Land, and Keppel Capital. The target for a fund size of $600 million, with funds under management that totalled $1 billion once fully utilised.
On May 3rd, Keppel announced the removal of its conglomerate structure and the creation of a simpler horizontally integrated model that includes Fund Management, Investment and Operating Platforms. Being an alternative manager of assets Keppel has announced an interim AUM goal of $100 billion as well as a total asset monetisation objective of between $10-12 billion in 2026.