Singapore-based conglomerate Keppel Corp. has completed its acquisition of a 49% stake for VND3.18 trillion ($135.4 million) from a subsidiary of Vietnamese property developer Khang Dien.
As a result, New Binh Trung Real Estate Company, the subsidiary of Ho Chi Minh City-based Khang Dien, has become an associated company of Keppel Corp., the Singaporean major said in an August 11 announcement.
Keppel started the transaction in late May via VN Success Pte. Ltd., a 50-50 joint venture between a subsidiary of Keppel Land Limited and Keppel Vietnam Fund. Both are under Keppel Corp.
The conglomerate said at that time that the deal served the development of two adjacent residential projects in Thu Duc city on HCMC's outskirts.
Khang Dien, listed on the Ho Chi Minh Stock Exchange (HoSE) as KDH, holds the remaining 51% interest in New Binh Trung Real Estate.
The transaction followed a memorandum of understanding signed by Khang Dien and Keppel Corporation’s realty arm Keppel Land in February. Under the MoU, the two sides collaborate in carrying out residential projects and sustainable urban developments in HCMC, Vietnam’s southern economic hub.
Keppel Land entered Vietnam in the early 1990s and is well known for high-quality residential projects such as Estella Heights, Celesta Rise and Empire City, and top-class commercial developments like Saigon Centre in HCMC.
In urban development, Keppel Land has grown to become one of the largest foreign real estate investors and contributors to urban development in Vietnam, with more than 20 projects and total registered investment capital of about $3.5 billion to date.
KDH shares of Khang Dien closed up 0.14% at VND36,500 ($1.53) on Monday.