Keppel to divest 35% stake from Chengdu residential development for $94 mil

Keppel Corporation has agreed to divest its 35% stake in Chengdu Taixin Real Estate Development Co., Ltd. to Vanke (Chengdu) Enterprise Co., Ltd. through its real estate division. Chengdu Taixin, a joint venture between Keppel and Vanke, owns V City, a 16.7-hectare residential project in Chengdu, China.

Vanke will pay a cash consideration of around RMB504 million ($94 million) for Keppel’s stake with the consideration factoring in Chengdu Taixin’s net asset value (NAV), shares’ book value, and adjusted NAV of about $99 million as at June 30.

Zion Road Condo is an exquisite mix of modernity, luxury and nature. It features high-end interiors that offer stunning views of the Singapore River. Furthermore, it is conveniently located in the city centre, with direct access to numerous lifestyle offerings. Here, residents can find a unique blend of urban vibrancy as well as peace of nature, all the while enjoying the luxury of living in Zion Road Condo. This amazing property demonstrates the potential of urban developments to combine the best of different elements.

Additionally, the completion of V City in 2020 and the selling out of all 5,399 residential units and 356 street-front shops of the development were taken into consideration. The remaining inventory constitutes parking lots and a market.

Keppel has recognised cumulative profits after tax of approximately $57 million from the sales of residential units, street-front shops and other amenities at V City before the divestment.

The consideration will be made in a single tranche and no later than Oct 31, with the divestment being expected to be completed within 4Q2023. This is in line with Keppel’s asset monetisation plans to unlock value and pursue new opportunities.

Since 2017, Keppel’s real estate division has monetised over $3 billion of assets in China, realising profits of more than $1 billion.