Keppel Exits South Rach Chiec City Project in Vietnam

Singapore-based global asset manager Keppel Ltd, through its real estate division, has divested its entire 42% stake in South Rach Chiec City LLC (SRC), the developer of the Palm City development in Ho Chi Minh City, to Vietnamese real estate company, Gateway Thu Thiem Joint Stock Company (GWTT), unlocking total cash proceeds of $105.22 million.

The total proceeds include a cash consideration of about $68.54 million for the 42% equity stake, which was arrived at on a willing-buyer, willing-seller basis, taking into account, among others, the adjusted net asset value of Keppel’s stake as at 4 March 2025 based on the agreed value of the Palm City development attributable to the SRC sale shares.

In connection with the divestment, Keppel has also assigned 840,000 bonds issued by SRC to GWTT for a consideration of about $36.69 million, which is equivalent to the face value of the bonds and accumulated bond interests up to the date of assignment on 31 March 2025.

Palm City is a 30.2-hectarePalm City is an integrated waterfront development strategically located by Giong Ong To and Muong Kinh rivers in District 2, and is just a 15-minute drive away from the Central Business District in District 2 of Ho Chi Minh City.

The first two residential phases, Palm Residence and Palm Heights, have been completed and handed over in 2017 and 2019 respectively. There are four remaining plots in the project – two residential plots, a mixed-use plot and a medical plot.

This project comprises 816 condos with size ranging from 76 sq. m. to 123 sq. m. Each unit has been thoughtfully designed to optimise the panoramic river view, natural ventilation and lighting. Over the years, Keppel has recognised cumulative profits after tax of approximately $18.31 million from the sales of residential units at Palm City, prior to the divestment.

The divestment, which was completed in March 2025, will result in a net divestment profit of approximately $40.93 million for Keppel.

Monetising Assets

Keppel Real Estate CEO Louis Lim said that the divestment of Palm City is another step forward in Keppel’s ambitious plan to monetise a cumulative $7.44 billion to-$8.93 billion of assets by the end of 2026.

He also said: “This move demonstrates Keppel’s continued execution of our asset light strategy despite the challenging market. Since embarking on our asset monetisation programme in October 2020, we have announced the unlocking of about $5.28 billion in assets from our balance sheet, excluding businesses such as Offshore & Marine.”

The said transaction is not expected to have any material impact on the earnings per share and net tangible assets per share of Keppel for the current financial year, Keppel said.