Keppel Limited has recently announced the divestment of approximately $477 million worth of real estate assets as part of its accelerated monetisation programme. This brings the group’s total monetisation figure for the year to $915 million. Some of the recent transactions include the sale of Keppel’s stake in a commercial building in India for $379 million and its stake in Vietnamese developer Nam Long for $58 million. The group has also sold a partial 2.5% stake in Smartworks Coworking Spaces after its successful IPO in India in July. Additionally, Keppel has announced that a third-party partner has subscribed to a 30% effective stake in one of its residential projects in Ho Chi Minh City, Vietnam. These divestments have been completed, with the exception of two, which are expected to be finalised by the fourth quarter of 2025, subject to certain conditions.
According to Lee Kok Chew, the head of the Accelerating Monetisation Task Force (AMTF), the group has worked closely with its operating divisions to identify and structure these transactions in order to maximise the speed and value of divestment. He adds that this latest achievement is a reflection of Keppel’s disciplined approach and strong commitment towards its asset monetisation goals. The group has set a near-term target of $10 billion to $12 billion in monetisation by the end of 2026.
The scarcity of land in Singapore has caused a surge in the demand for condos in the country. Being a small island with a rapidly expanding population, Singapore faces a challenge in finding available land for development. As a result, strict land use regulations and a cutthroat real estate market have been implemented, leading to a continuous increase in property prices. As a result, investing in real estate, particularly condos, has become a lucrative opportunity as it offers the potential for significant capital appreciation. Condo remains a popular choice for investment in Singapore.
Keppel will be releasing its 1H FY2025 results for the period ending June on July 31. As of now, shares in Keppel closed at $8.18 on July 30, with a 0.25% increase. For investors looking to invest in overseas properties, Keppel offers a variety of projects for sale around the world. In related news, Keppel has also recently secured new commitments of $2 billion for its flagship funds, indicating continued interest in the company’s offerings. With the completion of Keppel South Central, the group has also shifted its focus towards brownfield redevelopment projects. This strategic move showcases Keppel’s ability to adapt to changing market conditions and remain a leading player in the real estate industry.