Keppel Capital Holdings, in collaboration with Keppel Land, has raised US$400 million for the Keppel Vietnam Fund, with co-investment from a global institutional investor which wasn’t named.
The fund is focused real estate investment in Vietnam and has a target fund size of US$600 million.
It will be used to invest alongside Keppel Land in real estate projects, including residential developments, commercial properties as well as mixed-use projects and townships in Vietnam, with a focus on Ho Chi Minh City and Hanoi.
The fund is managed by Alpha Investment Partners, the private fund management arm of Keppel Capital, while Keppel Land will be the development and property manager of the properties in the fund.
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When fully leveraged and invested, the fund will potentially have assets under management of approximately US$1 billion.
According to Keppel, the fund is in line with its Vision 2030, which is aiming for growth in sustainable urbanisation, supported by an active asset management arm to fund investments and recycle capital.
This fund marks Keppel Capital’s expansion into a new geography, says CEO Christina Tan. “The successful first closing of the Fund, even amid the COVID-19 pandemic, demonstrates investors’ confidence in our ability to generate attractive risk adjusted returns through investing in the growing real estate sector in Vietnam,” she adds.
According to Tan Swee Yiow, CEO of Keppel Land, Keppel has been investing in Vietnam’s property sector for nearly three decades. “Our strong track record in building and operating developments across various property segments, as well as extensive local network, will enable the Fund to access proprietary deal flows, and allow Keppel to enhance the returns from its property business by tapping investor capital,” he says.