A Keppel consortium has entered an agreement to acquire a 49 percent interest in three residential land sites in Hanoi, Vietnam, from Phu Long Real Estates JSC for a total 2.72 trillion Vietnamese dong, or around S$159.7 million, Keppel Corp. said in a filing to SGX Saturday.
The consortium includes Keppel Land’s wholly owned subsidiary Keppel Land Vietnam Properties, Keppel Vietnam Fund (KVF) and a co-investor of KVF, the filing said. KVF and the co-investment vehicle are both managed by Alpha Investment Partners, a private fund manager which is wholly owned by Keppel Capital, the filing said.
Joseph Low, president for Vietnam at Keppel Land, said in the statement that Keppel Land Vietnam’s move to invest with KVF and the co-investor will allow the company to tap third-party funds by collaborating with Keppel Capital. He added that the move was in line with Keppel’s asset-light business model under its Vision 2030 plan.
Two of the sites are zoned for landed housing development and one is zoned for a high-rise condominium, Keppel said. The necessary development approvals have already been obtained, the filing said.
The Keppel Consortium and Phu Long plan to jointly develop around 1,260 homes, including 1,020 condominium apartments and around 240 landed homes, with a total development costs of more than 11.5 trillion dong, or around S$680 million, the filing said.
The deal is expected to be completed by the third quarter of this year, Keppel said.
In 2019, Keppel Land collaborated with Phu Long Real Estate on developing three land parcels in Ho Chi Minh City.