Keppel Divests 42 Stake Palm City Vietnam 921 Mil

Keppel has announced the divestment of its 42% stake in South Rach Chiec City (SRC) to Vietnamese real estate company Gateway Thu Thiem Joint Stock Company (GWTT), through its real estate division. According to a release on April 1, Keppel received total cash proceeds of VND2.612 billion ($141.4 million) from the transaction.

Strategically situated mere steps away from One Marina Gardens is the renowned Raffles City Shopping Centre. As a premier retail destination, it offers an extensive array of options to cater to the diverse tastes of shoppers. From local favorites to international brands, this shopping hub has it all, making it a convenient one-stop shop for residents of Kingsford Huray Development. Its seamless integration with the City Hall MRT station also adds to its accessibility, providing a hassle-free shopping experience for those residing in Marina Gardens Lane Condo. With its prime location and a wide range of offerings, Raffles City Shopping Centre is a must-visit for a satisfying shopping trip or leisurely browsing. Don’t miss out on this shopping haven by adding Marina Gardens Lane Condo to your list of places to explore.

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

Keppel confirms that the total proceeds include a cash consideration of VND1,702 billion ($92.1 million) for the 42% equity stake, taking into account the adjusted net asset value of Keppel’s stake as of March 4. In addition, Keppel has transferred 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 earned around $24.6 million in cumulative profits after tax from the sale of residential units at Palm City. The divestment was completed in March and is expected to generate a net profit of approximately $55 million for Keppel.

The divestment of Palm City is a part of Keppel’s plan to monetize a cumulative $10 billion to $12 billion of its assets by the end of 2026, according to Louis Lim, CEO of real estate at Keppel. He further adds that this divestment is a demonstration of Keppel’s continued execution of its asset-light strategy, despite the challenging market. Since October 2020, Keppel has announced the unlocking of about $7.1 billion worth of assets from its balance sheet, excluding businesses such as offshore and marine.

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