Keppel expects $43m gain from $205m sale of Shenyang township project

It said it is recycling assets for higher returns.

Keppel Corporation expects to gain $43m from the sale of its whole stake in Keppel Township Development (Shenyang) Co. Ltd. (KTDS) to Shenyang SUNAC Xinxing Enterprise Management for $205m.

According to an announcement, KTDS owns and develops a residential township project in Shenbei New District in Shenyang City, China.

The sale is in line with Keppel Land’s strategy to recycle assets to seek higher returns and rebalance its portfolio to focus on selected high-growth cities in China, Keppel said.

Completion of the divestment is expected to take place by June 2018. KTDS will then cease to be a subsidiary of the Company.

The unaudited net asset value of KTDS was approximately RMB 538m as at 31 May 2018.

Keppel’s indirect subsidiaries previously sold Keppel Bay Property Development Shenyang (KBPDS) to Shenyang Vanke Property Development at a total price of $105m. The sale was also part of its asset recycling strategy.