Keppel, through its wholly-owned subsidiary Corredance, has filed a notice of arbitration with the Singapore International Arbitration Centre against Denver Power Ltd, Tien Phuoc Real Estate Joint Stock Company and Tran Thai Lands Company Limited (collectively, the respondents) over claims arising from an investment agreement dated March 2, 2016.
The agreement relates to a development that was intended to be built in the south of the core of Thu Thiem New Area in Ho Chi Minh City, Vietnam. In Keppel’s release dated March 2, 2016, the development was meant to be a 14.6-hectare waterfront site comprising residential apartments, office and retail properties as well as an 86-storey integrated mixed-use tower complex.
Corredance has a 40% equity interest in the project company, Empire City, which it acquired for US$93.9 million or $131.6 million at the time.
In late 2025, Empire City was informed that it had to pay additional land use fees of some VND6.877 trillion (US$261 million or $333.3 million) for the land plots. Keppel says it has lodged formal requests with the relevant authorities to reconsider and amend the decisions, which remain pending.
Corredance is seeking to hold the respondents fully liable for the additional land use fees and is claiming indemnity for any resulting losses.
Keppel adds that the investment in Empire City is expected to remain profitable based on the carrying cost of the land plots, although it will see lower overall returns if the additional fees are not fully borne by the respondents.
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Shares in Keppel closed at $11.55 on April 24.
