Keppel divests 100% equity interest in Chengdu Shengshi Jingwei Real Estate

The sale is worth RMB1,561m (S$324m). 

Keppel Land China Limited, through its subsidiary Hillwest Pte Ltd., divested 100% of its equity interest in Chengdu Shengshi Jingwei Real Estate Co., Ltd. for around RMB1,561m (S$324m).

Its shares will be sold to subsidiaries of China Vanke Co. Ltd, Keppel Corporation Limited said in a disclosure. Chengdu Shengshi owns Serenity Villas, a residential development project in Mumashan, Chengdu, China.

The buyers will pay RMB1,405m (S$292m) to Hillwest as consideration for the sale shares, while RMB156m (S$32m) will be paid to a related company of Hillwest as repayment for loans extended to Chengdu Shengshi.

“The Consideration was arrived at on a willing-buyer, willing-seller basis, taking into account, among others, the location of the Site, prevailing market conditions and the adjusted net asset value based on the agreed value of the Site attributable to the Sale Shares, which was approximately RMB1,405m (approximately S$292m) as of 30 June 2021,” Keppel said.

“Following completion of the Divestment, Chengdu Shengshi will no longer be a subsidiary of the company,” it added.

The first instalment amounts to RMB1,124m (S$234m), comprising 80% of the consideration and loan payment, with the loan payment payable within seven working days from 29 July. The remaining amount will be payable on or before 30 November.

Eighty percent of the equity interest will be transferred to the buyers after the payment of the first instalment, while the remaining 20% will be transferred within five working days after completion of the first transfer.

“Completion of the Divestment is expected to take place by 2H 2021,” it said.

Keppel expects to gain about RMB668m (S$139m) from the divestment.

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Thanks to the renewal of interest in the Singapore market.
The electronics cluster showed the most optimism.
The initiative aims to improve the overseas service exports environment.
This is the group’s 2nd sustainability notes issuance in the SGD bond market.
A Jefferies report said Singapore banks have enough buffers.
HongkongLand, CapitaLandInvest, and ComfortDelGro showed the most growth.
Mizuho Securities Asia Limited will be the notes dealer.
The company’s first batch has been fully allocated in the country.
The total consideration of up to $539m over three years will take effect. 
This is to address the increased global demand for healthcare products.
Thanks to the company's improved distribution channels.
Hiring activities online increased by 55.7% in August.
CapitaLandInvest, Capland IntCom T, and Sembcorp Industries showed the most growth.
This low turnout is due to the large quantum of the project, experts say.