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Keppel Land’s wholly-owned unit, Keppel Land China, has sold its 49.7 percent stake in Cityone Development (Wuxi) Co., Ltd (CDCL) to Tianhonglixin Real Estate Co for about 619 million yuan (around S$127 million).
A joint venture company, CDCL was formed in 2005 to develop a township project in Wuxi known as Central Park City. It stands on three land parcels with a combined gross floor area (GFA) of approximately 670,000 sqm, which are being developed in phases.
Plot A, which is still under development, features residential and commercial components with a GFA of 130,000 sqm. On the other hand, Plot B and C comprises 4,559 residential units, of which 98 percent have been taken-up as of 30 November 2016.
“China is one of Keppel Land’s core markets and Wuxi is one of the focus cities where we will strengthen our presence,” said Ben Lee, President of Keppel Land China.
“While we build a quality portfolio across several cities in China, we are also actively looking out for new opportunities to maximise returns. The divestment of interest in Central Park City is line with Keppel Land’s strategy to actively recycle capital to seek higher returns,” he added.
Upon completion of the deal by Q1 2017, Keppel Land China will receive a net divestment gain of about 190 million yuan (about S$39 million).
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg.
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