Keppel to sell 70% of its stake in Vietnam-based Saigon Sports City for up to $300 mln

Singapore-headquartered conglomerate Keppel will sell 70% of its stake at Saigon Sports City Limited, the operator of its 64-hectare real estate project in District 2, a prime location in Ho Chi Minh City.

Jencity Limited, a subsidiary of Keppel, will sell a 35% stake to HTV Dai Phuoc Company Limited and another 35% to Vinobly Investment Real Estate JSC, Keppel said in a Monday statement. The transaction is subject to some conditions, including regulatory approvals.

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

Dai Phuoc will pay Jencity a cash consideration of approximately VND320.0 billion ($13 million) for a 5% stake and between VND2,879.3-VND3,290.6 billion ($117.2-133.9 million) for a further 30% stake. The figure for the 30% portion is higher than the net asset value of VND821.9 billion ($33.4 million) as of June 30.

Vinobly will pay Jencity between VND3,359.2 billion ($136.7 million) and VND3,839 billion ($156.3 million) for the sale, versus a net asset value of VND958.8 billion of the portion as of June 30, 2024.

Saigon Sports City project is designed as Vietnam's one-stop sports, entertainment and lifestyle hub. The project is under development and Keppel said it is ready to sell 268 residential units within the project’s sub-area Velona from 2026. Saigon Sports City’s total number of units is 3,195.

Its size of 64 hectares 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.

The $500-million project kicked off construction in November 2019, however, the project has been progressing at slow pace.