SINGAPORE (EDGEPROP) - Keppel Corporation, together with Keppel Vietnam Fund (jointly, the Keppel Consortium), have entered into binding agreements to acquire from the Khang Dien Group a 49% interest in two adjacent residential projects in Thu Duc City, Ho Chi Minh City, Vietnam, for VND3,180 billion ($187.1 million). The Keppel Consortium and Khang Dien Group plan to jointly develop a total of more than 200 landed homes and more than 600 high-rise apartments on the two sites, which have a total land area of about 11.8 hectares.

The shareholding ratio between Keppel and KVF, one of Keppel’s private funds, in the Keppel Consortium is 50-50. The Khang Dien Group, which is an established developer
in Vietnam listed on the Ho Chi Minh Stock Exchange, will hold the remaining 51% interest. The total development cost for the projects, inclusive of land cost, is expected to be around VND10,200 billion or around $600 million. The necessary developmental approvals have already been obtained, Keppel's announcement says.

In 2022, Keppel Land, KVF and a co-investor of KVF acquired three residential land sites in Hanoi, on which the Group will develop about 1,260 homes.

The KVF is a joint venture between Keppel Land and Keppel Capital. It had a target fund size of US$600 million with assets under management of US$1 billion when fully deployed.

On May 3, Keppel announced the removal of its conglomerate structure, with creation of a simplified horizontally integrated model comprising Fund Management, Investment and Operating Platforms. As an alternative asset manager, Keppel announced an interim AUM target of $100 billion and a cumulative asset monetisation target of $10-$12 billion, both by end-2026.

This article first appeared on The Edge Singapore.