Brian Jeffrey
Keppel is set to sell a significant portion of its stake in the company responsible for the Saigon Sport City development, located in Thu Duc City, Ho Chi Minh City, Vietnam, as reported by The Business Times.
Jencity, a Keppel subsidiary, plans to transfer 35 percent of its shares to Dai Phuoc Co Ltd.
The transaction will occur in two stages, initially selling 5 percent followed by 30 percent of the shares. Following these phases, Keppel anticipates earnings of VND320 billion and VND3,290.6 billion, respectively.
Additionally, Jencity is set to offload 35 percent of its shares to Vinobly Real Estate Investment JSC for VND3.839 trillion.
Consequently, 70 percent of Saigon Sport City will be sold for a total of VND7.5 trillion, with payment contingent on the completion of necessary legal formalities by the buyers.
Dai Phuoc is based in Bien Hoa City, Dong Nai province, and its legal representative is Trinh Manh Thanh. Vinobly specializes in financial services and is headquartered in Thu Duc City.
Both companies were established in late December 2023.
The Saigon Sport City is a $500 million development featuring upscale housing, commercial spaces, and public sports facilities. Upon completion, it aims to offer 4,300 apartments to the housing market.
Despite the kickoff of the project with a groundbreaking ceremony in November 2019, construction has not yet begun.
Besides the Saigon Sport City project, Keppel is also exiting another prime development in Ho Chi Minh City, known as Saigon Center Phase 3, by selling shares in a subsidiary. A Japanese real estate firm will take over the project.
Saigon Center Phase 3 spans 8,624 square meters and includes two separate projects located at 92-94 Nam Ky Khoi Nghia Street. The first two phases of the Saigon Center were completed in 1993 and 2016.
Due to ongoing site clearance issues, only a small portion of land, 816 sq m, has been handed over to investors thus far.
The project is co-invested by Keppel Land Watco IV and Keppel Land Watco V.
Saigon Real Estate Corporation (Resco) holds a 16 percent stake in Keppel Land Watco IV, while Keppel Group subsidiaries – Keppel Land and Krystal Investment – account for 68 percent and 16 percent shares, respectively. Similar ownership structures exist for Keppel Land Watco V.
Another Keppel subsidiary, Himawari VNSC3, possesses preferential stocks within Keppel Land and Krystal Investment.
