SINGAPORE - Keppel Corp is selling a 70 per cent interest in a Vietnam township project to Nam Long Investment Corp for 2.3 trillion Vietnamese dong (S$136 million) in cash.
Keppel Land, Keppel's real estate arm, is currently in the process of taking over complete control of Dong Nai Waterfront City LLC from its current joint venture partner in the project through a demerger. Keppel Land will retain a 30 per cent stake in Dong Nai Waterfront City after the sale of the 70 per cent stake to Nam Long.
Dong Nai Waterfront City has been granted the right to develop a township on 170 hectares of land in Dong Nai Province in Vietnam. Dong Nai Waterfront City also currently holds a 28 ha plot of land which is excluded from the proposed divestment, said the company.
The deal is conditional upon certain conditions precedent being fulfilled, such as the completion of the demerger and regulatory approval.
The consideration will be paid in tranches. The unaudited net asset value attributable to the sale stake was approximately $57 million as at Dec 31, 2018.
According to a filing to the Singapore Exchange, Keppel Corp said that this is in line with Keppel Land's strategy to recycle assets to seek higher returns. The funds generated will be used to pursue other opportunities in Vietnam.