Keppel Land China and fund manager Alpha Investment Partners are divesting their 80 per cent stake in a firm that owns a mixed-used development in Shanghai for US$516.9 million (S$705 million).

The stake is being bought by a subsidiary of the Chongbang Group, which owns the other 20 per cent of the project.

Keppel Land China holds 42.5 per cent of the 80 per cent stake while Alpha Asia Macro Trends Fund II and a co-investor hold the remaining 57.5 per cent.

Keppel Land China is a wholly owned subsidiary of Keppel Land, while Keppel Capital Holdings, which is part of Keppel Corp, owns Alpha.

Keppel Land China's 42.5 per cent share of the divestment is about US$219.7 million. The divestment, which is expected to be completed by the end of the month, will yield a gain of around $73 million.

Keppel Land chief executive Ang Wee Gee, said in a statement: "The divestment is in line with Keppel Land's strategy to continually recycle assets to seek higher returns."

The mixed-used development, which is called Life Hub @ Jinqiao, began operations in 2009.

Keppel Land China and Alpha acquired the project in 2013, and undertook asset management and upgrading efforts.

Ms Christina Tan, chief executive of Keppel Capital and managing director of Alpha, said: "With rising affluence, there has been a shift in consumption and shopping habits among the people in Shanghai. To capture greater value, new concepts and unique design layouts were introduced."

Life Hub has around 180 retail tenants, giving it an occupancy rate of 97 per cent, while the office tower is fully occupied.