KepLand China selling stakes in Chengdu township project

KEPPEL Land's (KepLand) two associated companies and their joint-venture (JV) partner are selling their stakes in Chengdu Century Development Co (CCDC) to Sichuan Zhong Tie Wen Rui Property Co for 342.08 million yuan (S$70 million).

KepLand has an effective interest of 44.05 per cent in CCDC and its effective share of the total consideration is some 150.69 million yuan.

The two associated companies of KepLand, a wholly owned unit of Keppel Corporation, are CityOne Township Development and Quivivet.

CCDC was formed as a JV company in 2003 to develop The Botanica township project in Chengdu, which comprises apartments and supporting amenities including a primary school and kindergartens.

The divestment is expected to be completed by end-2016. The transaction is not expected to have any material impact on the earnings per share and net tangible asset per share of Keppel Corp for the current financial year.