Keppel Land China, through its subsidiary, Hillwest Limited, is divesting 100% of its stake in Chengdu Shengshi Jingwei Real Estate to the subsidiaries of China Vanke (the buyers).
The buyers will acquire the sale shares from Hillwest at a consideration of RMB1.56 billion ($324 million).
Of the consideration amount, around RMB1.41 billion will be paid to Hillwest, and another RMB156 million will be paid to a related company of Hillwest as repayment for loans extended to Chengdu Shengshi.
Chengdu Shengshi owns Serenity Villas, a residential development project in Mumashan, Chengdu, in China.
The consideration and loan repayment will be payable in cash in two installments.
See also: Keppel Land China subsidiary forms joint venture to acquire stake in Shanghai residential site
Some RMB1.12 billion – or 80% of the consideration – will be payable within seven days from July 29, while the remaining 20% will be payable on or before Nov 30.
The RMB156 million – or loan repayment – will be payable within seven days from July 29 as well.
Keppel Land says it expects to recognise a divestment gain of RMB668 million.
Shares in Keppel closed 3 cents higher or 0.6% up at $5.28 on July 28.
Photo: Keppel
