Keppel unit launches arbitration over US$261 million land fee dispute in Vietnam JV

Keppel Corporation Limited ( (SG:BN4) ) has issued an update.

Keppel subsidiary Corredance Pte. Ltd. has initiated arbitration at the Singapore International Arbitration Centre against Denver Power, Tien Phuoc Real Estate and Tran Thai Lands over an investment agreement tied to the Empire City joint venture in Ho Chi Minh City. The dispute centres on who is liable for about VND6.877 trillion in additional land use fees imposed on the project’s land plots in the Thu Thiem New Area.

Corredance argues that the joint venture partners are responsible under warranties and representations in the 2016 investment agreement, and is seeking declarations that they, not Keppel’s unit, must bear the land use fees and indemnify any related losses. Keppel maintains that the investment remains profitable based on current carrying costs of the land, though profitability would be reduced if the additional charges are not fully shouldered by its partners, highlighting financial and legal uncertainty for the Vietnamese flagship development.

The most recent analyst rating on (SG:BN4) stock is a Buy with a S$13.52 price target. To see the full list of analyst forecasts on Keppel Corporation Limited stock, see the SG:BN4 Stock Forecast page.

More about Keppel Corporation Limited

Keppel Ltd. is a Singapore-based conglomerate with diversified operations spanning urban development, infrastructure and asset management. Through subsidiaries such as Corredance Pte. Ltd., the group invests in and develops large-scale residential and mixed-use projects in growth markets including Vietnam, with a focus on city-building and long-term real estate value creation.

Average Trading Volume: 5,446,735

Technical Sentiment Signal: Buy

Current Market Cap: S$20.24B

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