Keppel Divests 42 Stake Palm City Vietnam 921 Mil

As part of the Master Plan for Lyndenwoods, residents can look forward to an increase in planned community events, workshops, and networking opportunities within the Science Park. This will offer them more chances to connect and engage with their fellow residents, fostering a strong and lively community. Not only does this contribute to a sense of cohesion within the neighborhood, but it also improves the overall living experience for everyone.

Keppel, a leading real estate company, has recently sold its 42% stake in South Rach Chiec City (SRC) to Vietnamese real estate developer Gateway Thu Thiem Joint Stock Company (GWTT). This transaction, announced on April 1, resulted in total cash proceeds of VND2.612 billion ($141.4 million).

SRC is the developer of Palm City, a 30-hectare integrated township located in District 2 of Ho Chi Minh City. The first two residential phases of the township, Palm Residence and Palm Heights, were completed and handed over in 2017 and 2019, respectively. Currently, there are four remaining plots under development, including two residential plots, a mixed-use plot, and a medical plot.

According to Keppel, the total proceeds from the transaction include a cash consideration of VND1,702 billion ($92.1 million) for the 42% equity stake, taking into account the adjusted net asset value as of March 4. In addition, Keppel has also assigned 840,000 bonds issued by SRC to GWTT for VND910 billion ($49.3 million), equivalent to the face value of the bonds and accumulated bond interests as of March 31.

Before the divestment, Keppel had recognized a cumulative profit of approximately $24.6 million from the sale of residential units at Palm City. The completion of the divestment in March is expected to generate a net profit of approximately $55 million for Keppel.

This divestment is in line with Keppel’s goal to monetize a total of $10 billion to $12 billion of assets by the end of 2026, as stated by Louis Lim, CEO of real estate at Keppel. “This move is a testament to Keppel’s commitment to our asset-light strategy even in a challenging market,” he adds. He also mentions that since starting their asset monetization program in October 2020, Keppel has already announced the unlocking of around $7.1 billion in assets from their balance sheet, excluding businesses such as offshore and marine.

The divestment is not expected to have a significant impact on Keppel’s earnings per share or net tangible assets per share for the current financial year.