Keppel Capital Holdings, in collaboration with Keppel Land, has launched a Vietnam-focused real estate fund with a target fund size of US$600 million. The Keppel Vietnam Fund has achieved its first closing of US$400 million, including co-investment commitment from a global institutional investor.
The fund seeks to invest in real estate projects, including residential developments, commercial properties as well as mixed-use projects and townships in the Southeast Asian country, with a focus on Ho Chi Minh City and Hanoi. Alpha Investment Partners, the private fund management arm of Keppel Capital, will be the fund manager, while Keppel Land will be the development and property manager of the properties in the fund.
When fully leveraged and invested, the fund will potentially have assets under management of approximately US$1 billion, Keppel Capital says.
Keppel Capital chief executive officer Christina Tan believes the successful first closing of the fund, amid the Covid-19 pandemic, reflects investor confidence in the company’s ability to generate attractive risk-adjusted returns by investing in the growing real estate sector in Vietnam.
“Keppel Land is a pioneer and one of the largest foreign real estate investors in Vietnam,” notes Keppel Land CEO Tan Swee Yiow. “We have been operating in the country for close to three decades, with a quality portfolio which includes Grade-A offices, residential properties, retail malls, integrated townships and serviced apartments.”