Singapore conglomerate Keppel Corporation has acquired a 49% stake in two adjacent residential projects in Ho Chi Minh City from Vietnamese property developer Khang Dien for VND3.18 trillion ($135.42 million).
According to Keppel’s Friday announcement, the Vietnamese firm, listed on the Ho Chi Minh Stock Exchange (HoSE) as KDH, holds the remaining 51% interest and will develop the projects in Thu Duc city on HCMC's outskirts with Keppel Corporation and Keppel Vietnam Fund, jointly known as the Keppel consortium.
This marks the second joint investment by the consortium following the acquisition of three residential sites in Hanoi in 2022.
The move follows a memorandum of understanding (MoU) signed by Khang Dien and Keppel Land, the realty arm of Keppel Corporation, on February 10. Under the deal, the two sides will collaborate on the development of residential projects as well as sustainable urban developments in HCMC.
Keppel Consortium and Khang Dien Group will cooperate to develop more than 200 houses and over 600 high-rise apartments on the two sites, which have a total area of 11.8 hectares. The development cost for the projects is estimated at VND10.2 trillion ($434.4 million). Relevant documents, including the master plan and the land use right certificates for the two sites, have been obtained.
The transactions are set to be completed this year, Keppel said.
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 1.36% at VND29,800 ($1.27) on Friday.