Keppel Land China has announced its RMB 2.9 billion ($440 million) sale of Keppel China Marina Holdings in Guangdong province as the unit of Temasek Holdings-backed Keppel Corp, seeks to “recycle assets” into China’s largest cities.
“The divestment is in line with our strategy to recycle assets to seek higher returns and rebalance our portfolio to focus on our five key cities of Shanghai, Beijing, Tianjin, Chengdu and Wuxi, where we have established strong track records and local teams,” said Ang Wee Gee, the CEO of Keppel Land China.
The sale of the holding company means that Keppel Land China is selling its 80 percent stake in Sunsea Yacht Club (Zhongshan) Co. Ltd., the Singaporean company indicated in a statement Thursday.
Selling Off a Southern China Luxury Project
Sunsea owns the newly developed Keppel Cove in Zhongshan, an 890,000 square metre luxury residential project comprised of 250 waterfront villas with private berths, as well as the Marina at Keppel Cove, which offers berths for another 158 yachts.
Phase 1 of the integrated residential and marina community on Zhongshan’s Modao Island, which includes 42 villas, was completed in March this year.
“Leveraging Keppel Land’s experience in waterfront developments, we have developed Phase 1 of the premium Keppel Cove project,” said Keppel’s Ang added.
Keppel Land China will receive a divestment gain of approximately S$290 million, and the transaction is expected to be complete by the end of 2017.
Buying into China’s Big Cities
The Zhongshan project disposal follows just two months after Keppel Land sold another waterfront project in Jiangsu province. In that transaction, a subsidiary of mainland developer China Vanke paid RMB 1.43 billion to purchase Keppel’s 100 percent interest in Keppel Lakefront (Nantong) Property Development, which controls a residential project in the Yangtze river delta city of Nantong, China.
In July, Keppel teamed with its private equity real estate unit, Alpha Investment Partners, to purchase an office project in Shanghai from Beijing developer Soho China for around RMB 3.6 billion ($525 million).
As of Thursday afternoon in Singapore, Keppel Corporation Limited’s stock was down by 0.81 percent, a S$0.06 decrease to S$7.39.
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