Keppel Q3 Net Profit Rises 20% on Core Growth; S$2.4 Billion in Property Sales
Singapore's Keppel reported a 20% year-on-year increase in third-quarter net profit, driven by stronger earnings from its connectivity and infrastructure units. The firm has also announced over S$2.4 billion in non-core property sales this year, while exploring up to $1 billion in Vietnam real estat
Singapore’s Keppel lifted third-quarter net profit by 20 per cent year-on-year, according to a business update. Profit from its core business rose about 15 per cent, driven by stronger earnings from its connectivity unit, which includes data centres, and steady infrastructure contributions.
Nine-month net profit fell 40 per cent after the value of Keppel’s non-core assets dropped 4 per cent, the company said. Its real estate division has announced more than S$2.4 billion ($1.9 billion) in non-core property sales this year.
In other Asia Pacific real estate news, Japan’s Ichigo Office REIT has agreed to sell five mid-sized Tokyo office buildings for JPY 19 billion ($120.5 million) to two undisclosed domestic companies. The price compares with a combined appraised value of JPY 13.9 billion; the trust expects a gain of JPY 7.9 billion and plans to return JPY 5.3 billion to unitholders.
The city of Utsunomiya, north of Tokyo, has picked a group led by Mitsubishi Estate to build a data centre campus costing JPY 1 trillion ($6.3 billion). The 370,000 square metre (4 million square foot) site sits next to a 400-megawatt TEPCO Power Grid substation, with all four buildings targeted for fiscal 2035.
The Hong Kong Monetary Authority has urged more than 10 banks to keep backing developers’ refinancing and loan extensions, according to sources cited by The Standard. Deputy chief executive Arthur Yuen chaired the meeting and warned that problems among developers would hit commercial property again and weigh on prices.
Australia’s Quantum DC is proposing a 1.2-gigawatt data centre on a 220 hectare (544 acre) site in Tungkillo, South Australia. The company expects the first of three stages to open in 2028 and the full hub by 2031, with contracted wind and solar power supplying about 80 per cent of the hub’s electricity.
Singapore-based Worldwide Hotels has bought the 101-room Holiday Inn West Perth for A$26.8 million ($18.9 million) from Australian Development Capital. IHG Hotels & Resorts leased the property in 2021 for an initial 20 years, with two five-year options.
India’s Larsen & Toubro has broken ground on a 52-megawatt data centre near Chennai, expanding an existing 30MW centre at its Kancheepuram campus. In August, L&T won an order valued at INR 100 billion to INR 150 billion ($1.1 billion to $1.6 billion) to build an AI facility for US-based Together AI.
Keppel is exploring investment platforms that could raise up to $1 billion for Vietnam real estate, mainly from third-party co-investors. The firm is one of 10 inaugural members of the Vietnam International Financial Centre in Ho Chi Minh City, and has built about 30 projects in Vietnam over four decades.
