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Keppel Land sells two property companies in Sri Lanka, Vietnam

KEPPEL Land has in recent weeks divested its stakes in two property companies in Sri Lanka and Vietnam.

The property arm of diversified marine conglomerate, Keppel Corp, said the sales were part of a continual focus to strengthen its presence in its core markets and growth cities, as well as an effort to recycle assets for higher returns.

Its wholly-owned subsidiary, Edmonton Pte Ltd, has agreed to sell its 60 per cent interest in Keppel CT Developments Pte Ltd, a joint venture company in Sri Lanka, for about 550 million rupees (about S$5.5 million). The joint venture company was formed for the development of a condominium located in Colombo, Sri Lanka.

In another deal, Keppel Land and Kepventure Pte Ltd - another unit of Keppel Corp - agreed to sell their respective stakes of 55 per cent and 45 per cent in Fernland Investment Pte Ltd for a total of US$10.86 million. Fernland holds a 78.58 per cent stake in an office building in Hanoi.

The transactions are 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.