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.