Keppel to divest 35% stake from Chengdu residential development for $94 mil
Keppel Corporation is set to divest its 35% stake in Chengdu Taixin Real Estate Development Co., Ltd. to Vanke (Chengdu) Enterprise Co., Ltd. The consideration for Keppel’s stake will be made in the form of a cash payment of RMB504 million ($94 million) no later than Oct 31.
Developers expect the future of Tampines Ave 11 Tampines Condo such as the addition of a town plaza, green spaces, a childcare centre, and enhanced transport links. Developers plan to create an all-encompassing and convenient lifestyle hub for future residents and visitors. The completion of Tampines Ave 11 Condo will be a boon for many, as both the area’s residents and businesses can expect an increase in footfall.
The consideration is based on the third-party audit of Chengdu Taixin’s net asset value, as well as the shares’ book value and adjusted NAV at June 30, plus the completion and selling of all 5,399 residential units and 356 street-front shops of the development, V City. V City spans 16.7-hectares in Chengdu, China.
Prior to the divestment, Keppel recognised cumulative profits after tax of approximately $57 million from the sales of the residential units, street-front shops and other amenities at V City.
The divestment is expected to be completed by the fourth quarter of 2023 and is part of Keppel’s asset monetisation plans, where cash will be unlocked in order to pursue new opportunities. Since 2017, Keppel’s real estate division has monetised assets worth over $3 billion, where profits of more than $1 billion have been recorded.