Keppel Land China selling mixed-use property for 473.5m yuan

KEPPEL Land China, a wholly-owned subsidiary of Keppel Corp's property arm, is selling a mixed-use property in Jiangyin, China for 473.5 million yuan (S$94.5 million), the conglomerate said on Tuesday.

The buyer, Aoyuan Group Chongqing Property Co, will pay 278.8 million yuan for Jiangyin Evergro Properties Co, the subsidiary of Keppel Land China that owns the residential and commercial mixed-use site.

It will cough up an additional 194.7 million yuan to repay an existing loan extended by a Keppel Land China affiliate to Jiangyin Evergro.

Both amounts will be paid in cash in two tranches, with final payment expected in the second quarter of 2020. The sale is expected to complete in the third quarter.

The divestment is in line with Keppel Land China's strategy to recycle and reinvest capital for higher returns, and rebalance its portfolio to focus on selected high-growth cities in China, Keppel Corp said.

It is not expected to have any material impact on the net tangible assets per share or earnings per share of Keppel Corp for the current financial year.

Keppel Corp shares, trading cum-dividend, closed up S$0.05 or 1 per cent to S$5.29 on Tuesday, before the announcement was made.