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KEPPEL Corporation Limited's property unit, Keppel Land, has agreed to divest its 80 per cent stake in an Indonesian joint venture for 529 billion rupiah (S$57 million), which is expected to yield an after-tax profit of about S$32 million.
Its wholly owned subsidiary, Meadowsville Investment Pte Ltd, entered into an agreement on Wednesday to sell its 80 per cent stake in PT Sentral Tunjungan Perkasa (PT STP) to PT Indadi Land.
The balance 20 per cent of PT STP remains held by Meadowsville's joint venture partner, PT Pusindotrida.
PT STP owns, among other things, a 23,253 sqm land parcel located along Jalan Tunjungan, in Surabaya, Indonesia.
"The divestment is in line with the company's strategy to recycle assets to seek higher returns," Keppel Land president (Indonesia) Sam Moon Thong said.
"Indonesia is one of Keppel Land's key growth markets and we will continue to explore opportunities to scale up our presence in Greater Jakarta," he added.
Keppel Land had recently announced its partnership with PT Metropolitan Land Tbk to develop about 450 landed homes on a 12-ha site within Metland Puri, a township adjacent to West Jakarta.