The Keppel Consortium, comprising of Keppel Corporation and Keppel Vietnam Fund, have entered into a binding agreement to acquire a 49% stake in two residential projects in Ho Chi Minh City, Vietnam from the Khang Dien Group. The two projects, which are adjacent to each other and have a total 11.8-hectare land area, will have over 200 landed homes and 600 high-rise apartments when completed.

Situated on the Altura Executive Condominium eastern side of Bukit Batok West Avenue. Altura EC is one of the most sought-after developments in the vicinity. Spanning 1.24 hectares, it is expected to offer 375 executive condo units. In addition, it is close to the Jurong Innovation District and Tengah Town. Qingjian Realty and Santarli Construction’s joint bid of $266 million translates to roughly $662 per square foot per plot ratio. Altura EC is adjacent to the upcoming Le Quest mixed-use development, which is expected to be completed in 2021.

The Keppel Consortium will own a 50-50 shareholding ratio, with the Khang Dien Group holding the remaining 51% stake in the projects. The total cost for the projects, including land cost, is expected to be around VND10,200 billion or around $600 million. The necessary developmental approvals needed for the projects have already been obtained.

This 49% stake purchase is not the first investment involving Keppel and the Khang Dien Group. Back in 2022, Keppel Land, KVF and a co-investor of KVF had acquired three residential land sites in Hanoi, on which they planned to develop 1,260 homes.

Due to the successful joint venture this time around, Keppel Land and KVF have announced the removal of its conglomerate structure and its adoption of a simplified, horizontally integrated model comprising of its 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.

The Keppel Vietnam Fund (KVF) is a joint venture between Keppel Land and Keppel Capital, which had a target fund size of US$600 million with assets under management of US$1 billion when fully deployed. With this new purchase, the Keppel Consortium is set to be firmly established within the Vietnam real estate market, and the two projects will no doubt become strong market contenders.