Keppel Land to divest 80% stake in Surabaya mall

The deal is worth $42.8m.

Keppel Land today revealed that its wholly-owned subsidiary, PT Keppel Land, has entered into an agreement to sell its 80% effective shareholding in BG Junction, a strata-titled retail development in Surabaya, Indonesia.

The deal to sell its stake in BG Junction was inked with Silverise Enterprise and PT Pelangi Arjuno for approximately $42.8m (Rp 400 billion).

Silverise Enterprise currently owns a 20% stake in the retail development. The sale is expected to result in an after-tax profit of about S$12.5 million for Keppel Land, and is expected to be completed by the end of 2014. 

Here’s more from Keppel Land:

Located near the Central Business District in Jalan Bubutan, BG Junction comprises a six-storey retail mall with a net floor area of about 47,000 sm and an adjoining multi-storey car park. 

The retail mall is currently about 95% occupied with anchor tenants such as Carrefour hypermarket, Cahaya Departmental Store and Hartono Electronic.

Keppel Land’s portfolio of projects in Indonesia includes International Financial Centre Jakarta (IFC), located on a prime site along Jalan Jendral Sudirman in Jakarta’s central business district, a three-hectare residential site in West Jakarta acquired earlier this year, as well as Ria Bintan, an integrated resort comprising hotels and championship golf courses.

Keppel Land is currently developing Tower 2 of IFC, a 48-storey Grade A office building. When completed in the second half of 2015, Tower 2 will offer about 50,000 sm of NLA. 

The above transaction is expected to be completed by end-2014.