Real Estate

Keppel raises $400 mln for Vietnam-focused real estate fund

Xuan Thinh Saturday | 12/05/2020 09:24

Saigon Centre, a mixed-use complex in Ho Chi Minh City invested by Keppel Land. Photo:

Keppel Capital Holdings and Keppel Land, arms of Keppel Corporation have raised $400 million for the Keppel Vietnam Fund.

This includes co-investment commitment from an unnamed global institutional investor, Keppel Capital and Keppel Land said on Friday in a press statement.

The Keppel Vietnam Fund has a target size of $600 million, and it seeks to invest alongside Keppel Land in real estate projects, including residential developments, commercial properties as well as mixed-use projects and townships in Vietnam, with a focus on Ho Chi Minh City and Hanoi.

While Alpha Investment Partners Limited, the private fund management arm of Keppel Capital, will be the fund manager, and Keppel Land will be the development and property manager of the properties in the Fund.

When fully leveraged and invested, the fund will potentially have assets under management of approximately $1 billion.

“Keppel Land is a pioneer and one of the largest foreign real estate investors in Vietnam. We have been operating in the country for close to three decades, with a quality portfolio which includes Grade A offices, residential properties, retail malls, integrated townships and serviced apartments,” said Tan Swee Yiow, CEO of Keppel Land.

The capital raised from the Fund will support Keppel Land’s efforts to scale up our presence in Vietnam and adopt an asset-light strategy with lower capital requirements, he added.

The $400 million closing of the fund is not expected to have any material impact on Keppel Corp's earnings per share and net tangible asset per share for the financial year ending Dec 31, 2020.

Keppel Land is the property arm of Keppel Corporation, one of Singapore’s flagship multinational companies with a global footprint in more than 20 countries.

Keppel Corporation provides solutions for sustainable urbanisation, focusing on energy & environment, urban development, connectivity and asset management.

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