Singapore-based Keppel Ltd. plans to divest 70 percent of its capital in the 64-hectare US$500 million Saigon Sports City project, which remains a largely empty lot in Thu Duc City, Ho Chi Minh City after four years of construction, expecting to earn up to VND7.5 trillion ($303 million).

Keppel announced that its subsidiary, Jencity Limited, is selling 35 percent of the project’s charter capital to Dong Nai-based real estate firm Dai Phuoc Co. Ltd. in two stages: first five percent, then thirty percent.

Dai Phuoc will pay Jencity a cash consideration of approximately VND320 billion ($12.9 million) for the first five percent of the charter capital in Saigon Sports City and between VND2.9 trillion ($116.7 million) and VND3.29 trillion ($132.4 million) for the remaining 30 percent. 

Jencity will also sell another 35 percent to Ho Chi Minh City-headquartered Vinobly Investment Real Estate JSC. 

Vinobly will pay Jencity a consideration ranging from some VND3.4 trillion ($136.6 million) to over VND3.8 trillion ($152.6 million).

Jencity will hold the remaining 30 percent stake in Saigon Sports City.

A groundbreaking ceremony was held for the project in 2019 before work on it started in January 2020 but the construction site is now overgrown with weeds.

The project carries a price tag of $500 million and was planned to have two areas.

A 26-hectare area in the north will accommodate sports and entertainment facilities, including a football pitch and stands with 10,000 seats, a swimming pool, a water park, an indoor stadium, a tennis training center, a sports academy, and other components.

A 38-hectare area in the south will house high-end apartments, offices, hotels, schools, and other public facilities.

Tran Thi Khanh Linh, investment manager at real estate service provider Savills Vietnam, told Tuoi Tre (Youth) newspaper that Keppel’s divestment might be part of the firm’s restructuring plan to focus on other potential projects.

Linh believed the move would also help capable enterprises to resume the project.

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