Singapore's Keppel Exits Vietnam's Empire City Project

Singaporean conglomerate Keppel Corporation has announced the sale of its entire 40% stake in the Empire City project, a large-scale mixed-use development in Ho Chi Minh City's Thủ Thiêm New Urban Area, for $270 million. This transaction marks the end of Keppel's over decade-long involvement in the project. The 40% stake will be transferred to Denver Power Vietnam Company Limited, a subsidiary of Denver Power Ltd., and Golden Axis Company Limited, which is almost entirely owned by Trần Thái Real Estate Company Limited and Tiến Phước Real Estate Investment Joint Stock Company. The deal will be settled in cash over three installments, with the final payment contingent upon regulatory approval of the share transfer registration. Keppel stated that the divestment is part of its strategy to restructure its investment portfolio, shifting towards an asset management and operation model rather than direct ownership of real estate projects. The transaction is not expected to significantly impact the group's net tangible assets per share (NTA) and earnings per share (EPS) for the current financial year. Upon completion of the transaction, Empire City LLC will no longer be an affiliate of Keppel. Concurrently, arbitration proceedings related to the investment agreement between joint venture partners and the project company will be terminated. The Empire City project is one of the earliest large-scale developments in the Thủ Thiêm New Urban Area, with an initial announced investment of approximately $1.2 billion. While the project, featuring an 88-storey multi-functional tower, was expected to be completed in 2022, only three residential phases—Linden Residences, Tilia Residences, and Cove Residences—have been handed over after more than a decade of development. The remaining components have faced delays due to legal issues. Recent information indicates that the developer has completed the payment of nearly VND 5.3 trillion (approximately $210 million) in additional land use fees. The company has also petitioned authorities to consider a waiver for late payment penalties, citing that the procedural delays were not attributable to the investor. To date, Empire City has only received land use rights certificates for 3 out of the 9 allocated plots, preventing the commencement of subsequent project phases, including the highly anticipated 88-storey tower, once envisioned as a symbol of the Thủ Thiêm area.