Keppel Corporation, a Singapore-based company, has announced the sale of its entire 40% stake in the Empire City project located in the Thu Thiem new urban area of Ho Chi Minh City for a total of $270 million. This transaction marks the end of Keppel's role as a shareholder after more than ten years of participation in the project.

The conditional agreement to transfer the stake was signed recently, with the deal expected to be completed in the fourth quarter of this year. According to Keppel, 20% of the stake will be sold to Denver Power Vietnam Company Limited, a subsidiary of Denver Power Ltd., while the remaining portion will go to Golden Axis Company Limited, which is predominantly owned by Tran Thai Real Estate Company Limited and Tien Phuoc Real Estate Joint Stock Company.

The payment for the transaction will be made in cash across three installments, with the final payment contingent upon regulatory approval for the transfer of the stake. Keppel stated that this divestment is part of its strategy to restructure its investment portfolio, focusing on asset management and operations rather than direct ownership of real estate projects.

Following the completion of this transaction, Empire City LLC will no longer be an affiliate of Keppel. Additionally, an arbitration case related to the investment agreement among joint venture partners and the project company will also be concluded. Empire City is one of the first large-scale projects in the Thu Thiem urban area, with a total announced investment of approximately $1.2 billion. The project was initially expected to be completed by 2022, featuring a landmark multifunctional tower of 88 stories.

However, after over a decade of development, only three residential segments—Linden Residences, Tilia Residences, and Cove Residences—have been delivered. Other components of the project have faced legal hurdles, delaying progress. Recently, the developer has completed the payment of nearly 5.3 trillion VND for additional land use fees and has requested authorities to consider penalties for late payments due to procedural delays not caused by the investor.

As of now, Empire City has received land use rights certificates for only three out of the nine allocated land lots, which has hindered the commencement of subsequent phases of the project, including the highly anticipated 88-story tower that is envisioned as a symbol of the Thu Thiem urban area.