Keppel Land divests stake in Chengdu township
China is one of Keppel Land’s core markets, and the company is looking to strengthen its presence in several major cities.
Keppel Land associates CityOne Township Development and Quivivet, and their joint venture partner, are divesting their stakes in Chengdu Century Development Co. (CCDC) to Sichuan Zhong Tie Wen Rui Property Co. for RMB342.08 million (S$69.81 million).
CCDC was formed in 2003 as a joint venture company to develop The Botanica township project in Chengdu.
Keppel Land has an effective interest of 44.05 percent in CCDC, and its effective share of the total consideration is about RMB150.69 million (S$30.75 million).
The Botanica comprises 9,664 apartments with supporting amenities including a primary school and kindergartens. All the residential units have been sold and handed over to buyers as at August 2016.
The remaining inventories comprise 10 shophouses and 955 unsold carpark lots from previous phases.
Ben Lee, President of Keppel Land China, said: “We constantly review our investment portfolio to maximise returns. China is one of Keppel Land’s core markets and we are strengthening our presence in focus cities of Shanghai, Beijing, Chengdu, Tianjin and Wuxi, where we have established strong track records, networks and local teams.”
The latest transaction is not expected to have any material impact on the earnings per share and net tangible asset per share of parent company Keppel Corporation for the current financial year.
With the divestment of The Botanica, which is expected to be completed by 31 December, Keppel Land has four projects in Chengdu.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
