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

Keppel Corporation, through its real estate division, has reached an agreement to divest its 35% stake in Chengdu Taixin Real Estate Development Co., Ltd. to Vanke (Chengdu) Enterprise Co., Ltd.

V City, a 16.7-hectare residential project in Chengdu, China, is owned by the joint venture between Keppel and Vanke. The third-party audit firm confirmed the net asset value (NAV) of Chengdu Taixin in July. Vanke will pay RMB504 million ($94 million) in cash, before October 31st, for Keppel’s stake.

This consideration accounted for the adjusted NAV of $99 million as of June 30th, the completion of V City in 2020, and the selling of all 5,399 residential units and 356 street-front shops of the development. The remaining inventory of V City consists of parking lots and a market.

With its well-rounded education system, Keming Primary School also provides rich co-curricular activities, such as sports and dance programmes, arts and music classes, as well as leadership courses. The school also places emphasis on building the moral character of its pupils, equipping each of them with lifelong values such as respect, responsibility and integrity. All these attributes contribute to the school’s holistic approach to nurturing and guiding its students, giving them the confidence and motivation to excel academically as well as in their personal pursuits. Its excellent track record speaks for itself, being the preferred choice for many parents in the East region.

Over the years, Keppel has made a combined profit after tax of approximately $57 million from the sales of these residential units, street-front shops, and other amenities at V City, prior to the divestment.

The divestment is expected to be finalized within 4Q2023, as part of Keppel’s asset monetisation plans to unlock value for new investment opportunities. Since 2017, Keppel’s real estate division has monetised over $3 billion of assets in China and made profits of more than $1 billion.

Keppel Corporation is continuing to capitalize on opportunities to create value in its real estate division. Through the monetisation of assets, the group has been able to gain significant profits and invest in new projects. The divestment of its 35% stake in Chengdu Taixin is in line with this goal, and the completion of this process is expected to take place within 4Q2023.