Keppel Land sells stake in Jakarta township project for $290.5 million

Keppel Land is divesting its 51 per cent interest in Jakarta Garden City to its joint venture partner PT Modernland Realty for $290.5 million.

It will realise a net gain of about $186 million.

Keppel Land partnered Indonesian-listed Modernland in 2004 to undertake the Jakarta Garden City township project.

Located on 270-ha site in East Jakarta, Jakarta Garden City was to be developed in phases into a modern and integrated township, targeting at the middle to upper-middle market segments.

Under the current master plan, Jakarta Garden City will eventually house over 4,000 residential units and 850 shophouses, with another 51.6 ha of predominantly commercial and institutional land to be either developed by the joint venture companies or sold to third parties, so as to accelerate the completion of the township by 2021.

About 93 per cent of the 1,287 launched homes and shophouses in the township have been sold to-date.

Keppel Land said the sale will unlock value in its investments and "and together with the experience gained, will enable the company to pursue other opportunities in Indonesia, with a focus on Jakarta".