Buyers of Keppel project in HCMC closely linked to private Vietnamese conglomerate

Two companies set to purchase a 70% stake in Saigon Sports City Limited (SSCL), operator of Singapore-based Keppel’s 64-hectare real estate project in Ho Chi Minh City’s District 2, are closely linked to a major multi-sector group in Vietnam.

While confirming the connection, a representative of the group requested that it not be named at this stage of the transaction but did not provide specific reasons for the request.

In a Monday statement, Singaporean conglomerate Keppel said that its subsidiary Jencity Limited will sell a 35% stake to HTV Dai Phuoc Company Limited and another 35% to Vinobly Investment Real Estate JSC.

HTV Dai Phuoc is a construction and real estate business based in Dong Nai province, which neighbors HCMC, while Vinobly Investment Real Estate is a real estate business based in Vinhomes Grand Park, a major urban area invested by Vietnamese conglomerate Vingroup.

The transactions with HTV Dai Phuoc and Vinobly are worth VND3.2-3.6 trillion ($129.2-145.4 million) and VND3.36-3.84 trillion ($136.7-156.3 million), respectively.

This means that the Keppel Land subsidiary will be able to earn a maximum of VND7.44 trillion ($301.7 million) from selling the 70% stake.

Also on Monday, Jencity Limited and HTV Dai Phuoc signed a series of contracts for the sale.

Saigon Sports City Limited, was established in 2007 as a wholly owned Keppel subsidiary. It had a charter capital of $119 million in July 2021.

Work on the 64-hectare, $500 million Saigon Sports City project kicked off construction in 2019. It was designed as Vietnam's one-stop sports, entertainment and lifestyle hub.

Keppel had said it would be ready to sell 268 residential units within the project’s sub-area Velona from 2026. The project is set to have 3,195 units in total.

It is one of Keppel’s biggest residential projects, only smaller than North Island Site in Tianjin (China) with 188.9 hectares and Empire City in HCMC (Vietnam) with 66.6 hectares.

Both buyers – HTV Dai Phuoc and Vinobly – are said to have close links with a leading Vietnamese conglomerate which boasts an ecosystem spanning many fields, including urban development, aviation, and energy.

In the real estate sector, the group has been actively involved in M&A transactions for several large projects. Prior to the Saigon Sports City project, it was reported to be the new owner of the 200-hectare Hoa Sen Dai Phuoc project (previously held by DIC Corp). It also acquired the 34-hectare Dai Phuoc One Mea project, located on Ong Con island, with 342 townhouses, villas, garden villas, and riverfront villas. Both projects are located in Dong Nai province, adjacent to HCMC.

Another notable deal by this group in 2020 was complete acquisition of the 245-hectare Splendora real estate project in Hanoi, buying a 50% stake from South Korean firm Posco E&C and then the remaining 50% from Vinaconex, a leading construction company in Vietnam.