Keppel Land China announced on Nov 10 that it has divested 100% of the equity interest in Chengdu Hilltop Development Co Ltd (CHD) to Chengdu Longfor Development Co for a consideration RMB1,260 million ($250.4 million).
The divestment was made by Keppel Land China’s subsidiary Hillwest Pte Ltd.
Some RMB845.2 million will be paid as consideration for the divestment while the remaining RMB414.8 million is for repayment of loans that CHD owes to a subsidiary of Hillwest.
The divestment, which is in line with Keppel’s Vision 2030, is expected to recognise a divestment gain of some $43 million for Keppel Land China.
The divestment is expected to be completed in the first quarter of 2021.
CHD was incorporated to acquire the land for the development of Hill Crest Villas in southwest Chengdu.
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Hill Crest Villas has completed Phase 1 of the development, which comprises 53 villas and a clubhouse.
Following the divestment of Hill Crest Villas, Keppel Land continues to have four residential projects in Chengdu, namely Park Avenue Heights, Serenity Villas, V City and City Park.
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Keppel Corporation says had the divestment been completed on Dec 31, 2019, the net tangible asset per share as at Dec 31, 2019 would have increased to $5.27 from $5.25.
Earnings per share (EPS) for FY2019 would have increased to 41.4 cents from 38.9 cents had the divestment been completed on Jan 1, 2019.
Shares in Keppel Corp closed 15 cents higher or 3.2% up at $4.86 on Nov 10.
