Keppel subsidiary forms joint venture with Shanghai Topchain
The joint venture company will manage investment properties with potential for asset enhancement initiatives in China.
Keppel Yong Da Property Management (Shanghai), a subsidiary of Keppel Corporation’s Keppel Land China Limited, has entered into an agreement with Shanghai Topchain Link Century Industrial Development Corporation to form a joint venture company.
Through the company, the two firms will jointly manage investment properties, mainly offices and business parks, with potential for asset enhancement initiatives in China.
Keppel Yong Da will subscribe for 49% equity interest for RMB4.9m (approximately $1.0m) whilst Topchain will subscribe for 51% equity interest for RMB5.1m (approximately $1.1m) in the joint venture company.
Half of the subscription price will be paid within 30 working days from the establishment of the joint venture company. The remaining balance will be paid at a date agreed upon by both companies.
The transaction is not expected to have any material impact on the net tangible assets per share or earnings per share of the company for the current financial year.