Keppel units ink agreement to develop 19 plots in Tianjin, China

Under the deal, Keppel Hong Da will partially divest in Tianjin Fulong.

Keppel Ltd., through its wholly-owned subsidiaries Keppel Hong Da Property Development Co., Ltd and Changzhou Fushi Real Estate Development Co., Ltd., has signed an agreement with Tianjin Shunhua Real Estate Construction Management Co., Ltd, to jointly develop 19 land plots in Tianjin Eco-City Northern District, China.

Under the signed equity transfer and cooperation framework agreement, Tianjin Shunhua will pay Keppel Hong Da around $92.8m for a 30% equity stake in Tianjin Fulong Property Development Co., Ltd, developer of the Northern District Project.

This transaction will be paid in cash over two tranches.

With this divestment, Tianjin Shunhua will receive a $74.2m loan from Tianjin Fulong, subject to yearly review.

“The consideration was arrived at on a willing buyer, willing seller basis taking into account, among others the adjusted net asset value of the Relevant Stake,” a bourse filing read.

After the completion of the divestment, Keppel Hong Da’s equity stake in Tianjin Fulong will be reduced from 51% to 21%, Changzhou Fushi will continue to hold a 49% equity stake, and Tianjin Shunhua will hold a 30% equity stake.

Keppel said this partial divestment is part of its asset monetisation programme. It is also part of efforts to work with a real estate partner for the development of large-scale projects such as the Northern District Project.

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