Keppel Land ditches stakes in China's township project

The total deal value is $69.81m.

Keppel Land announced that it has  entered into an agreement to divest their stakes in Chengdu Century Development Co (CCDC) to Sichuan Zhong Tie Wen Rui Property Co., for RMB342.08 million (approximately S$69.81 million).

The deal was closed through its two associated companies, CityOne Township Development Pte. Ltd. and Quivivet Pte Ltd, and their joint venture partner.

Keppel Land has an effective interest of 44.05% in CCDC and its effective share of the total consideration is about RMB150.69 million (approximately S$30.75 million).

CCDC was formed as a joint venture company in 2003 to develop The Botanica township project in Chengdu.

Strategically located at the junction of Third Ring Road and Cheng Long Road in Jinjiang District, The Botanica comprises 9,664 apartments and supporting amenities including a primary school and kindergartens.

As of August 2016, all residential units have been sold and handed over to homebuyers. The remaining inventories comprise 955 unsold carpark lots and 10 shophouses from earlier phases.

Mr Ben Lee, President, Keppel Land China, a wholly-owned subsidiary of Keppel Land, said, "We constantly review our investment portfolio to maximise returns. China is one of Keppel Land's core markets and we are strengthening our presence in focus cities of Shanghai, Beijing, Chengdu, Tianjin and Wuxi, where we have established strong track records, networks and local teams."

With the divestment of The Botanica, Keppel Land has four projects in Chengdu which include Park Avenue Heights, Hill Crest Villa, Serenity Villa and its latest development with China Vanke, V City, which was launched in August 2015.

The divestment is expected to be completed by 31 December 2016. The transaction is not expected to have any material impact on the earnings per share and net tangible asset per share of Keppel Corporation for the current financial year.