Mainboard-listed Keppel Land has agreed to enter into a joint venture with Hong Kong-based Array Holdings through the acquisition of a 75 per cent stake in Array Real Estate Pte Ltd (Array). The remaining 25 per cent stake will continue to be held by Array Holdings.
The purchase price of the stake was not disclosed.
Array has a strong track record in the development, management and marketing/leasing of retail malls. These include Jurong Point Shopping Centre, Heartland Mall, Century Square, Tampines One, Hougang Mall, Tiong Bahru Plaza, White Sands, Liang Court, and Taimall in Taiwan. Array's clients include property owners and property funds in Singapore and the region.
Mr Michael Leong, CEO of Array, who has more than 30 years of experience in the real estate industry focusing on the retail sector in Asia, will continue to lead his team of more than 20 real estate professionals.
Said Mr Ang Wee Gee, CEO of Keppel Land: "This partnership will strengthen Keppel Land's commercial expertise. The company will also leverage Array's experience and network to capture opportunities in retail and mixed-use projects both locally and abroad."
Keppel Land has developed large-scale projects such as the Marina Bay Financial Centre in Singapore and acquired the mixed-use development, Life Hub @ Jinqiao, in Shanghai, China, last year. In line with its strategy to expand its commercial presence in the region, the company has also announced that it would expand its mixed-use developments in Vietnam and the Philippines, namely the 37-storey office tower in Saigon Centre Phase Two in Ho Chi Minh City and the 42-storey office building and retail mall extension of the SM-KL Tower project in Manila.
Completion of the Array transaction is expected to take place in January 2015. The transaction is not expected to have any material impact on the net tangible asset per share or earnings per share of Keppel Land for the current financial year.