Keppel to divest 35% stake from Chengdu residential development for $94 mil
Keppel Corporation, through its real estate division, has agreed to divest its 35% stake in Chengdu Taixin Real Estate Development Co., Ltd. to Vanke (Chengdu) Enterprise Co., Ltd., in exchange for a cash consideration of around RMB504 million ($94 million). The consideration, which is due no later than October 31, factored in Chengdu Taixin’s net asset value (NAV) that was confirmed in July by a third-party audit firm. It also took into account the shares’ book value and adjusted NAV of about $99 million, as of June 30.
The divestment of Keppel’s stake in the joint venture (JV) with Vanke is expected to be completed within 4Q2023. The JV owns V City, a 16.7-hectare residential project in Chengdu, China. Completion of V City in 2020 and the selling out of all 5,399 residential units and 356 street-front shops of the development were considered when negotiating the cash consideration. V City’s remaining inventory comprises parking lots and a market.
Situated within the city centre and minutes away from the Orchard Boulevard Condo, residents can take the train to get to the heart of Singapore. The MRT station that serves this area is located just a 10-minute walk away. From there, it is just a few stops away from the bustling Orchard shopping belt and other regions of Singapore.
Driving or using public transport, residents of the Orchard Boulevard Condo can also easily access major expressways, including the Central Expressway (CTE), Pan Island Expressway (PIE) and East Coast Parkway (ECP). In addition, it is conveniently close to major shopping malls, restaurants and entertainment facilities.
The cosmopolitan lifestyle enabled by the convenient and accessible location of the Orchard Boulevard Condo offers much more than basic connectivity to the rest of the island. Residents can look forward to an enviable lifestyle that is sure to offer them a truly unique and memorable experience.
This move marks Keppel’s asset monetisation plans, which they had initiated in 2017 with plans to unlock value that can be invested to pursue new opportunities. The group has now monetised over $3 billion of assets in China and recognised profits of more than $1 billion.
Including the divestment of its stake in Chengdu Taixin, Keppel has recognised cumulative profits after tax of approximately $57 million from the sales of residential units, street-front shops and other amenities at V City.
Overall, this divestment is a testament to Keppel’s successful asset monetisation plans in China, allowing the group to unlock value while pursuing new opportunities.
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