Keppel Land China to divest entire 40 percent stake in Nanjing Jinsheng for around S$362M

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Keppel Land China, via its subsidiary Eternal Commercial, is divesting its entire 40 percent stake in Najing Jinsheng Real Estate Development to two subsidiaries of Gemdale Corp. for around 1.75 billion yuan, or around S$362 million, Keppel Corp. said in a filing to SGX Monday.

Nanjing Jinsheng owns China Chic, an 8.8-ha residential project in Jiangbei New Area, Nanjing, China, the filing said.

Keppel Land China had tied up with Shanghai-listed Gemdale in 2018 to jointly develop China Chic by acquiring the Nanjing Jinsheng stake, the filing said.

The deal is expected to net Keppel Land China a divestment gain of around 284 million yuan, or around S$58.8 million, for the current fiscal year, Keppel said, adding this doesn’t include gains of around 44 million yuan from earlier-recognised sales of residential units and street-front shops.

All 1,589 residential units and 27 street-front shops have been fully sold, with the development completed in November, Keppel said, noting the remaining inventory is carpark lots, which will be sold over time.

“The divestment of our stake in Nanjing Jinsheng would allow us recycle capital more quickly to seize new opportunities. We look forward to further collaboration with Gemdale and other like-minded partners to continue investing strategically in China, which is a key market for Keppel Land,” Ben Lee, chief operating officer of Keppel Land and president of Keppel Land China, said in the statement.

The divestment is expected to be completed by the first quarter of 2022, Keppel said.

Keppel said its Keppel Land unit still owns a stake in Noblesse IX, a 3.8-ha prime residential and commercial mixed-use project still under development in Xuanwu District in Nanjing.

Keppel Land is a wholly owned subsidiary of Keppel Corp.