Can Keppel's Saigon project repeat Sino-Singapore Tianjin Eco-City's success?

Saigon Sports City could enjoy faster turnaround time and a greater focus on smart precincts, an analyst said.

Keppel Corporation can unlock potential from its new urban solutions unit (KUS) due to the growing demand for smart cities globally, CGS-CIMB analyst Lim Siew Khee said. Moreover, it has planted seeds in Vietnam, the Philippines, and China from which it can grow its platform.

KUS was set up in 2017 as an end-to-end integrated master developer of urban areas combining Keppel’s capabilities in energy, property, infrastructure, data centres, and connectivity to create smart precincts. According to CGS-CIMB's report, KUS could enjoy the same success as Sino-Singapore Tianjin Eco-City (SSTEC), but on a smaller scale, with a faster turnaround time and greater focus on smart precincts. 

Lim added that KUS is 100% owned, it is targeting a smaller area of around 3km² compared to SSTEC's 30km², and that it targets three to five years for returns on investment, unlike SSTEC's eight-year target.

In Vietnam, Keppel Land is the key brick-and-mortar developer whilst KUS’ role in Saigon Sports City (SSC) is to collaborate with Microsoft to power the city with Azure, Microsoft’s cloud platform. The platform enables essential services, such as security and access control, remote monitoring and control of smart infrastructure as well as monitoring of community vitals, such as air quality.

“SSC is expected to launch 618 and 720 units in 2018 and 2019, respectively, out of a total 4,284 homes planned,” Lim said.

In the Philippines, the analyst noted that KUS is exploring opportunities to provide urban solutions for Filinvest City in Alabang, a fully integrated and self-contained 244-hectare (2.4km²) prime property south of Metro Manila that has a large number of business process outsourcing offices, residential enclaves, leisure destinations, an education zone and a medical/ wellness hub.

“The corporate plan also includes Filinvest New Clark City in Central Luzon, which is envisioned as a pioneering global smart business community in a 288-hectare (2.8km²) area north of Metro Manila,” she added.

Meanwhile, in China, Lim thinks that KUS could use Envision China, the second-largest wind turbine manufacturer and the largest offshore wind power solutions provider in China, to develop smart solutions for clean energy.