Keppel sells stake in Zhongshan waterfront development for 2.9b yuan

KEPPEL Corp has sold its stake in a China waterfront residential and recreational development for 2.9 billion yuan (S$597.4 million).

Under the deal, Keppel will sell its indirectly held 80 per cent effective interest in Sunsea Yacht Club (Zhongshan) Co to one Delight Prime Ltd.

Sunsea is a joint venture company that owns and develops Keppel Cove, an integrated residential and marina lifestyle development on Modao Island in Zhongshan, China.

Payment will be made through three tranches in cash, with completion of the deal expected by end-2017.

According to Keppel, the unaudited net asset value of KCMH was around negative S$28.4 million as at Sept 30.

Ang Wee Gee, CEO of Keppel Land Limited (Keppel Land), said: "Leveraging Keppel Land's experience in waterfront developments, we have developed Phase 1 of the premium Keppel Cove project. 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."