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Jul 10, 2023 / 18:15

Keppel Land unit acquires 65% stake in Hanoi retail property

As companies diversify their investment portfolios to minimize risk, the deal is part of Keppel Land's plan to expand investment in Vietnam.

VN Prime Vietnam Co., Ltd (VNPV), a subsidiary of Keppel Land Limited, is acquiring a 65% stake in a company that owns a retail property project in Hanoi.

 Empire City is a high-class apartment building in Ho Chi Minh City's District 2, developed by three investors Keppel Land - Tien Phuoc - Tran Thai. Photo: Keppel Land

VNPV is estimated to invest approximately VND1.23 trillion (US$52.2 million) in the deal, payable in two tranches in cash. Binh Minh Investment and Trading Development JSC will hold the remaining 35% stake in the project.

The retail property project is part of a mixed-use commercial development currently under construction and scheduled for completion in 2025.

The transaction was concluded on a willing-buyer willing-seller basis, taking into account, among other things, the adjusted net asset value of VNPV's interest, based on the agreed value of the project attributable to VNPV's interest.

In late May, Keppel Land acquired a 49% stake in two residential projects in Ho Chi Minh City from Khang Dien Group for a total consideration of VND3.18 trillion ($134.9 million).

In March, Keppel Land executives expressed their desire to increase investments in Vietnam as companies diversify their investment portfolios to minimize risks.

The Singapore-based property developer has been present in Vietnam since the early 1990s.