Singapore’s Keppel signs nearly $270mn deal to exit Empire City project in Ho Chi Minh City

Keppel announced that it had signed the agreement to divest from Empire City LLC, the joint venture developing the Empire City project, to its partners. The transaction is expected to be completed in the fourth quarter of 2026.

Under the agreement, Keppel's 40-percent stake will be split equally for Denver Power Vietnam Company Limited, a subsidiary of Denver Power Ltd., and Golden Axis Company Limited.

Golden Axis is owned almost entirely, with a 99.99-percent stake, by two Vietnamese partners: Tran Thai Lands Company Limited and Tien Phuoc Real Estate Joint Stock Company.

The transaction value was determined based on the adjusted net asset value of the project as of August 3.

The buyers will make cash payments in three installments, with the final payment to be completed after the ownership transfer procedures are finalized with the relevant authorities.

Lee Kok Chew, head of Keppel's divestment acceleration unit, said the transaction is expected to generate approximately S$343 million (US$267.6 million) in cash for the group this year.

The divestment is part of Keppel's strategy to transform itself into a global asset manager and operator under an asset-light business model, focusing on unlocking value from non-core assets.

Upon completion of the transaction, Empire City LLC will no longer be an associate of Keppel.

Arbitration proceedings related to the investment agreement among the joint venture partners will also be terminated.

Since the beginning of the year, Keppel has completed divestments totaling around S$2.1 billion (US$1.63 billion), allowing the group to achieve ahead of schedule its S$2-3 billion (US$1.56-2.34 billion) divestment target set for the period through 2026.

Empire City is a large-scale riverside urban development in Thu Thiem New Urban Area and is regarded as one of Ho Chi Minh City's flagship luxury real estate projects.