Keppel Land to acquire JV partner’s 4% stake in China golf resort owner

KEPPEL Land, a unit of mainboard-listed Keppel Corp , will acquire from its joint venture partner a 4 per cent stake in Kingsdale Development, which owns 80 per cent of the Spring City Golf & Lake Resort in Kunming, China.

Keppel currently holds 86 per cent of Kingsdale via its subsidiaries, while the joint venture partner, Prime Growth Investments, owns 4 per cent. The remaining 10 per cent is held by another third party.

Romeo, a unit of Keppel Land, will pay US$6 million for the stake, Keppel Corp said in a Monday (Sep 5) board filing. Of the sum, US$3.4 million will be for the sale shares, while US$2.6 million will be for the assignment to Romeo of shareholder loans extended by Prime Growth to Kingsdale.

The agreed value of the property attributable to the sale shares was S$4.1 million as at end-March, while the book value and net asset value represented by the sale shares was negative S$400,000.

“This transaction will allow the company to better execute its plans to realise value from the Spring City Golf & Lake Resort,” Keppel said in its filing. Completion of the transaction is expected to take place by the fourth quarter.

Shares of Keppel closed at S$7.41 on Monday, up 0.14 per cent or S$0.01.