Keppel Corporation Withdraws from Saigon Sport City, Transfers 70% Shares to Two Domestic Enterprises

Keppel Corporation, a leading multinational corporation from Singapore with years of experience in real estate development across Southeast Asia, has recently announced its plan to sell 70% of its shares in the company that owns the Saigon Sport City project, a large-scale development located in Thu Duc City, Ho Chi Minh City. This decision marks a significant step in Keppel’s divestment strategy in the Vietnamese market, while also creating opportunities for two domestic enterprises, HTV Dai Phuoc Co., Ltd. and Vinobly Real Estate Investment JSC. Notably, both companies were established in late 2023, raising curiosity and expectations about their future development potential.

The Scale and Importance of Saigon Sport City

The Saigon Sport City project spans 64 hectares in Thu Duc City, located in the eastern part of Ho Chi Minh City, an area poised to become a new hub for economic, technological, and innovative growth. With its vast area and diverse development potential, Saigon Sport City is expected to become a comprehensive complex that includes high-end residential areas, modern sports facilities, shopping centers, and services. The project not only aims to provide a high-quality living environment but also to promote the development of the sports and entertainment industries, contributing to the transformation of Thu Duc City into a smart and modern urban area.

Keppel Corporation’s Divestment Move

Keppel Corporation, through its subsidiary Jencity, has owned and begun the initial development of the Saigon Sport City project for several years. However, in line with its long-term business strategy, Keppel decided to divest from the project to focus its resources on other more promising projects in Asia. Specifically, Keppel will sell 35% of its shares to each of the two domestic partners, HTV Dai Phuoc Co., Ltd., and Vinobly Real Estate Investment JSC, with the total value of the transaction reaching approximately VND 7,500 billion.

According to The Business Times, the transaction will be carried out in phases. HTV Dai Phuoc will acquire 35% of Jencity's shares through two transactions: the first 5% worth VND 320 billion, followed by the remaining 30% worth VND 3,290.6 billion. Meanwhile, Vinobly will purchase the remaining 35% of Jencity’s shares for VND 3,839 billion. However, the payment schedule will depend on the completion of legal procedures related to the Saigon Sport City project.

Introduction to the Two Domestic Partners

Keppel’s choice of two domestic companies to transfer its shares reflects not only a commercial partnership but also highlights the growing capability of Vietnamese enterprises to participate in large-scale real estate projects.

HTV Dai Phuoc Co., Ltd., based in Bien Hoa City, Dong Nai Province, operates in the real estate sector and is closely linked to projects that are gaining attention in areas surrounding Ho Chi Minh City. The company’s legal representative is Mr. Trinh Manh Thanh, who has extensive experience in real estate and also represents Dai Phu Two-member Co., Ltd.

Vinobly, headquartered in Long Binh Ward, Thu Duc City, specializes in financial services. Despite being newly established in late 2023, the company has quickly demonstrated its ambition by participating in the acquisition of shares in the Saigon Sport City project. Its legal representative is Mr. Nguyen Thanh Hoai, who is also the legal representative of Kien Nam LLC Law Firm.

Both companies share the common characteristic of being established at the end of 2023, raising questions about their preparation and long-term strategies for participating in large-scale real estate projects like Saigon Sport City.

Impact of the Transaction on Vietnam’s Real Estate Market

Keppel’s share transfer in the Saigon Sport City project is not just a simple commercial transaction but also carries significant implications for Vietnam’s real estate market. Firstly, it indicates a shift in strategy among foreign corporations in Vietnam. While international companies like Keppel previously played dominant roles in large projects, domestic companies like HTV Dai Phuoc and Vinobly are now increasingly asserting their financial strength and market position.

Secondly, this transaction will promote the development of Thu Duc City, which is being planned as one of Ho Chi Minh City's key smart urban centers. The involvement of domestic companies in projects like Saigon Sport City will contribute to making this area a new bright spot on Vietnam’s real estate map.

Finally, the success of HTV Dai Phuoc and Vinobly in this deal highlights the rapid growth of Vietnam’s real estate market, especially the ability of domestic companies to participate in and compete in large, complex projects.

Conclusion

The share transfer in the Saigon Sport City project between Keppel Corporation and two domestic enterprises marks an important turning point in the development of Vietnam’s real estate market. It not only demonstrates the strategic shift of international corporations but also showcases the potential and growth of domestic businesses. With its strategic location and large scale, Saigon Sport City is poised to become one of the key projects that will reshape Thu Duc City and the entire real estate market of Ho Chi Minh City in the coming years.