Keppel hits $2b monetisation target after Vietnam project sale

The project was sold for $343m.

Keppel Ltd said it has achieved its 2026 monetisation target of $2b to $3b ahead of schedule following divestment in its Vietnam project.

The group, through its real estate division, has entered into a conditional agreement to divest its entire 40% equity interest in Empire City LLC for an aggregate cash consideration of $343m (US$270m). The transaction is expected to be completed by Q4 2026.

EC was established to develop a waterfront site in the Thu Thiem New Area in Ho Chi Minh City, Vietnam, comprising residential and mixed-use developments.

Under the agreement, Keppel will divest 20% equity interest in EC to Denver Power Vietnam Company Limited, a wholly-owned subsidiary of Denver Power Ltd, and the other 20% equity interest to Golden Axis Company Limited, which is 99.99% owned by Tran Thai Lands Company Limited and Tien Phuoc Real Estate Joint Stock Company.

The purchasers will pay the consideration in cash over three tranches, with the last tranche to be paid upon receipt of authorities’ approval for registration of the equity transfer. The aggregate consideration was arrived at on a willing-buyer, willing-seller basis, taking into account, among others, the adjusted net asset value of the 40% stake, based on the agreed value of the project attributable to the 40% stake.

Lee Kok Chew, head of Keppel’s Accelerating Monetisation Task Force, said that once the divestment was realised at the end of the year, they will have reached approximately $2.1b of monetisation.

“Looking ahead, we will continue to pursue further opportunities to realise value from our $13.7b non-core portfolio by end-2030, releasing substantial cash that can be used to invest in higher-return growth opportunities, reduce debt and reward shareholders,” Lee said