SINGAPORE - Keppel Group said on Thursday (Oct 26) that its unit Keppel Land has sold its 80-per cent stake in Keppel Cove, a residential cum marina development on Modao Island in Zhongshan City, China, for a gain of about S$290 million.
Said Keppel Land CEO Ang Wee Gee: "The divestment is in line with our strategy to recycle assets to seek higher returns and rebalance our portfolio to focus on our five key cities of Shanghai, Beijing, Tianjin, Chengdu and Wuxi, where we have established strong track records and local teams."
In a pre-market filing, the company said its wholly-owned subsidiary Keppel Land China Ltd has entered into an agreement to divest its 100-per cent stake in Keppel China Marina Holdings (KCMH) to Delight Prime Limited for RMB2.9 billion (about S$597.4 million).
KCMH indirectly owns an 80-per cent effective stake in Sunsea Yacht Club (Zhongshan) Co Ltd, which owns and is developing Keppel Cove.
Covering a total land area of 891,752 square metres, Keppel Cove has completed Phase 1 of its development, comprising 42 villas, a club house and a marina with 82 berths, in March 2017.
Had the divestment been completed on Dec 31, 2016, the company's net tangible asset per share then would have increased from S$6.34 to S$6.50, and had the sale been completed on Jan 1, 2016, the earnings per share for FY2016 would have increased from 43.2 cents to 59.2 cents, said Keppel Land.