Keppel divests 35% stake in Chengdu project for $94 million
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Keppel’s real estate division has monetised more than $3 billion of assets in China since 2017, and recognised profits of more than $1 billion.
PHOTO: REUTERS
Mia Pei
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SINGAPORE - Keppel Corp has entered into an agreement with Vanke (Chengdu) Enterprise to divest its 35 per cent stake in their joint venture (JV), which owns a residential project in Chengdu, to the Chinese developer.
This is in line with Keppel’s asset monetisation plans to unlock value from “lumpy development profits” and pivot to more recurring income, said Keppel on Monday.
Vanke will pay a cash consideration of about 504 million yuan (S$94 million) in a single tranche no later than Oct 31, according to Keppel.
The consideration amount took into account the JV sale shares’ audited book value and adjusted net asset value of approximately $99 million as at June 30.
The group noted that all 5,399 residential units and 356 street-front shops of the JV’s residential project V City, which was completed in 2020, have been fully sold.
The remaining inventory comprises carpark spaces and a market.
The cumulative profits after tax from the sales of residential units, street-front shops and other amenities at V City reached $57 million, prior to the divestment.
The divestment is expected to be completed within the fourth quarter of 2023 and is not expected to have any material impact on the earnings per share and net tangible assets per share of Keppel for the current financial year.
The group’s real estate division has monetised more than $3 billion of assets in China since 2017 and recognised profits of more than $1 billion.
Keppel shares closed 0.3 per cent lower at $6.78 on Monday. THE BUSINESS TIMES
