Keppel unit sells stake in Keppel Township Development (Shenyang)

KEPPEL Land China is selling its 100 per cent stake in Keppel Township Development (Shenyang) (KTDS) for a total consideration of about 980 million yuan (S$205 million).

On Friday, Keppel Corporation announced that the buyer is Shenyang SUNAC Xinxing Enterprise Management.

The consideration took into account the unaudited net asset value of KTDS and market value of undeveloped land and unsold inventories.

The unaudited net asset value of KTDS was approximately 538 million yuan as at May 31, 2018.

KTDS owns and is currently developing a residential township project in Shenbei New District, Shenyang City, China.

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

Completion of the divestment is expected to take place by June this year. The company expects to recognise a gain of about S$43 million.

Keppel Corp closed at S$7.24 on Thursday, down 8 cents, or 1.1 per cent.