Keppel Capital and its sister company, Keppel Land, have raised US$400m (€329m), including a co-investment commitment from an unnamed global institutional investor, in the first close of their newly-launched Keppel Vietnam Fund.

The partners said their target fund size was US$600m, and with gearing, they would accumulate assets in key cities, such as Ho Chi Minh and Hanoi, of around US$1bn.

A Keppel spokesperson said the eight-year close-end had identified a pipeline assets in Vietnam.

“The fund’s strategy is to invest alongside Keppel Land in real estate projects, including residential developments, commercial properties as well as mixed-use projects and townships in Vietnam,” she told IPE Real Assets.

Christina Tan, CEO of Keppel Capital, said the inaugural Vietnam fund allowed Keppel Capital to expand into a new geography. The fund was designed to tap into Vietnam’s sound economic and market fundamentals.

Tan Swee Yiow, CEO of Keppel Land, said Keppel Land had been operating in Vietnam for close to three decades, and had developed Grade A offices, residential properties, retail malls, integrated townships and serviced apartments.

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