Keppel arm to sell 70% stake in Vietnam for $136m

The funds will be used to pursue other opportunities in Vietnam.

Keppel Corporation’s real estate arm Keppel Land will divest a 70% stake in Dong Nai Waterfront City LLC (DNWC) to Nam Long Investment Corporation (NLG) for $136m (VND2.31b), an announcement revealed.

DNWC which was granted the rights to develop a 170 ha township in Dong Nai Province, Vietnam is jointly held by Keppel Land and a joint venture partner. Keppel Land however is in the process of taking over the project through a demerger. DNWC also holds a 28 ha plot of land which is excluded from the proposed divestment.

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The proposed divestment is part of Keppel’s strategy to recycle assets to seek higher returns, the firm noted, and the funds generated from the sale will be used to pursue other opportunities in Vietnam.

“The consideration was arrived at on a willing-buyer and willing-seller basis taking into account the unaudited net asset value of DNWC and prevailing market conditions,” Keppel noted in a statement. The unaudited net asset value attributable to the sale stake was approximately $57m as at 31 December 2018.

The total consideration of the sale stake will be paid out in cash to Portsville upon the completion of the proposed divestment in tranches, the firm revealed. Keppel will still hold a 30% stake in DNWC.