Keppel hits 2026 asset-sale target early with US$270 million Vietnam divestment
The deal brings its year-to-date monetisations to S$2.1 billion, within its full-year goal of between S$2 billion and S$3 billion
[SINGAPORE] Keppel on Wednesday (Aug 5) said that it has successfully hit its annual asset-monetisation target ahead of schedule, cementing its ongoing transition towards an asset-light global manager model.
The asset manager and operator has hit S$2.1 billion in year-to-date monetisations, with the figure within Keppel’s target of S$2 billion to S$3 billion for 2026.
The milestone was officially achieved following a conditional agreement to offload its 40 per cent equity interest in Empire City, a waterfront and mixed-use development in Ho Chi Minh City, Vietnam.
The transaction will yield an aggregate cash consideration of about US$270 million or around S$343 million. The deal is slated for completion by the fourth quarter of 2026.
Strategic execution
Keppel said that by shedding real estate developments that sit heavy on its balance sheet, it is accelerating its growth as an asset-light company.
Lee Kok Chew, head of Keppel’s accelerating monetisation task force, noted that realising the S$343 million in cash reflects the company’s concerted efforts to unlock value from non-core assets.
The 40 per cent stake in Empire City is being sold to joint-venture partners; a 20 per cent interest will go to Denver Power Vietnam Company, and the remaining 20 per cent will go to Golden Axis Company.
The buyers will pay the consideration over three cash tranches, with the final payment to be made upon receiving the authorities’ approval for the equity transfer registration.
Looking ahead to 2030
With its 2026 target secured, Keppel said its focus is shifting towards its longer-term runway. The firm still holds a S$13.7 billion non-core portfolio, based on gross asset values reported at the end of June 2026, which it plans to realise by the end of 2030.
The substantial cash released from these ongoing divestments is earmarked for reinvestment into higher-return growth opportunities, reducing corporate debt and rewarding shareholders.
Keppel added that the Empire City transaction is not expected to have any material impact on its net tangible asset per share or earnings per share for the current financial year.
On Jul 30, it reported a 59 per cent year-on-year plunge in net profit to about S$155 million for the first half of its fiscal year.
The drag came from its non-core asset portfolio, which posted a net loss of S$375 million, primarily due to S$165 million in legacy rig impairments, in addition to interest costs tied to these rigs.
Still, analysts remained largely upbeat about the company’s core operations, despite the drop in earnings. The equity research houses also emphasised that the operational engine of its continuing core business – which it calls “New Keppel” – remains in prime health.
