Keppel divests Chengdu development for $94m

It will sell its stake to Vanke Enterprise.

Keppel Corporation, through its real estate division, has divested its 35% stake in Chengdu Taixin Real Estate Development (CTRED), its joint venture with Vanke Enterprise, for $94m.

With the sale of its stake in CTRED, Keppel will also have to divest V City, a 16.7-ha residential project in Chengdu, China. 

In a bourse filing, Keppel said Vanke will pay the $94m in a “single tranche payable no later than 31 October.”

The company is set to complete the divestment within 4Q 2023. The divestment will unlikely have any material impact on the earnings per share and net tangible assets per share of Keppel Corporation for the current financial year. 

Keppel’s real estate division has monetised over $3b of assets in China since 2017 and recognised profits of more than $1b.