Keppel Corp. plans to sell residential property developer Chengdu Shengshi Jingwei Real Estate to subsidiaries of Chinese property developer China Vanke for around 1.561 billion yuan, or around S$324 million, the Singapore company said Thursday.
Chengdu Shengshi, held by Keppel Land China through its subsidiary Hillwest, owns Serenity Villas, a residential development project in Mumashan, Chengdu, China, Keppel said in a filing to SGX.
Around 156 million yuan, or around S$32 million, of the consideration will be paid to a related company of Hillwest to repay loans extended to Chengdu Shengshi, Keppel said.
The consideration will be paid in two installments, with the first installment including the loan repayment and 80 percent of the total, or 1.124 million yuan, with an 80 percent stake in Chengdu Shengshi to be transferred to the buyer once it is received, the filing said. That payment is due within seven working days.
The remaining 20 percent, which is the second installment, of 281 million yuan, is due by 30 November, Keppel said.
The deal is expected to garner a divestment gain of around 688 million yuan, or around S$139 million, Keppel estimated.
On a pro forma basis, if the divestment had been completed on 1 January 2020, Keppel’s loss per share for 2020 would be been 20.5 Singapore cents, compared with 27.8 Singapore cents without the divestment, the filing said.
Keppel said the divestment is expected to be completed by year-end.