Keppel Land enters into conditional sale of Jakarta Garden City

Sold for approximately S$290m.

Keppel Land Limited (Keppel Land), through its wholly-owned subsidiaries, Le-Vision Pte Ltd and Castlehigh Pte Ltd, has entered into a conditional agreement to sell its 51% shareholding in the integrated township, Jakarta Garden City, to its joint venture partner, PT Modernland Realty Tbk (Modernland), for approximately S$290.5 million (Rp 2,294.4 billion). The sale is expected to result in an after-tax profit of about S$186.0 million for Keppel Land.

The abovementioned conditional sale is subject to Modernland obtaining approval for the transaction from their shareholders in an extraordinary general meeting and the necessary funding.

The transaction is expected to be completed by the fourth quarter of 2013. When completed, it is expected to result in net proceeds of approximately S$275.0 million for Keppel Land. On a pro forma basis, had the transaction been effected on 31 December 2012, the Group's net tangible asset per share would have increased from S$3.99 to S$4.12.

Keppel Land entered into the joint venture for the township in 2004 with Modernland, with shareholding of 51% and 49% respectively. Located in East Jakarta, about 93% of the 1,287 launched homes and shophouses have been sold to-date.

Mr Ang Wee Gee, CEO of Keppel Land, said, "The joint venture with Modernland is another example of how Keppel Land works with local partners to add value as well as raise the quality and standards of our developments. In this case, we have successfully developed Jakarta Garden City into a multi-award winning township in Indonesia.

"The sale will immediately unlock value in Jakarta Garden City for Keppel Land and enable us to pursue other opportunities in Indonesia, with a focus on Jakarta. We believe that Indonesia's steady economic growth underpinned by sound fundamentals will continue to drive demand for investment-grade offices and quality homes. Keppel Land will continue to play a part in Indonesia's growth story."

Keppel Land's portfolio of projects in Indonesia includes Ria Bintan, an integrated resort comprising hotels and championship golf courses, BG Junction, a 43,000 sm retail mall in the heart of Surabaya, as well as International Financial Centre (IFC) Jakarta, located in the city's financial district. IFC Jakarta Tower 2, a 50,000 sm Grade A office which will be completed in 2015, is the first project in Indonesia to be conferred the highest Green Mark Platinum Award by the BCA.

Jakarta Garden City's Phase 1 became the first residential development in Indonesia to be conferred the Green Mark Gold Award by the Building and Construction Authority (BCA) of Singapore in May 2011. The township also bagged the Best Middle Class Residential Development title at the International Real Estate Federation (FIABCI) Indonesia - BNI Prix d'Excellence Award 2009 and was runner-up in the Residential (Low Rise) category at the FIABCI Prix d'Excellence Awards 2010.