Latest asset monetisation to yield a net divestment profit of approximately S$55 million.

Keppel Ltd. (Keppel), 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 VND 2,612 billion (about S$141.4 million^[1]).

The total proceeds include a cash consideration of VND 1,702 billion (about S$92.1 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^[2] 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 VND 910 billion (about S$49.3 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-hectare integrated township located 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.

Over the years, Keppel has recognised cumulative profits after tax of approximately S$24.6 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 S$55 million for Keppel. 

Mr Louis Lim, CEO, Real Estate of Keppel Ltd., said, “The divestment of Palm City is another step forward in Keppel’s ambitious plan to monetise a cumulative S$10-S$12 billion of assets by the end of 2026. 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 S$7.1 billion in assets from our balance sheet, excluding businesses such as Offshore & Marine.”

The abovementioned 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.

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About Keppel Ltd. 

Keppel Ltd. (SGX:BN4) is a global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity. Headquartered in Singapore, Keppel operates in more than 20 countries worldwide, providing critical infrastructure and services for renewables, clean energy, decarbonisation, sustainable urban renewal and digital connectivity. Keppel creates value for investors and stakeholders through its quality investment platforms and diverse asset portfolios, including private funds and listed real estate and business trusts.

^[1] Based on an exchange rate of VND 1 to S$0.0000541 as of February 2025.

^[2] VND 1,702 billion (about S$92.1 million).