Keppel unit sells stake in Keppel Township Development (Shenyang)

Keppel Land China is selling its 100 per cent stake in Keppel Township Development (Shenyang) or KTDS for a total consideration of about 980 million yuan (S$206 million).

Keppel Corporation yesterday said the buyer is Shenyang Sunac Xinxing Enterprise Management.

The consideration took into account the unaudited net asset value of KTDS and market value of undeveloped land and unsold inventories.

The unaudited net asset value of KTDS was about 538 million yuan (S$113 million) as of May 31.

KTDS owns and is developing a residential township in Shenbei New District in Shenyang City.

"The divestment is in line with Keppel Land's strategy to recycle assets to seek higher returns and rebalance its portfolio to focus on selected high-growth cities in China," Keppel said.

The divestment is expected to be completed by this month.

  • $113m

    Approximate unaudited net asset value of Keppel Township Development (Shenyang) as of May 31.

The company expects to recognise a gain of about $43 million.

On Tuesday, Keppel announced that its wholly owned subsidiary, Keppel Capital Management, had incorporated two more wholly owned units - Keppel Capital China and Keppel Capital Alternative Asset - in Singapore.

Keppel Capital China is a fund management and investment holding company, while Keppel Capital Alternative Asset engages in fund management.

Keppel Corp shares closed at $7.24 on Thursday, down eight cents or 1.1 per cent.

A version of this article appeared in the print edition of The Straits Times on June 16, 2018, with the headline 'Keppel unit sells stake in Keppel Township Development (Shenyang)'. Print Edition | Subscribe