The joint venture is in line with the strategy of Keppel Land China to deepen its presence in Shanghai, which is one of its focus cities in China.
Keppel Land China, via its fully-owned subsidiary Shanghai Fengwo Apartment Management, has formed a joint venture with Gemdale and Shenzhen Shengjun Investment Management to own and develop an 8.4-hectare residential site located within Shanghai’s Jiading district, revealed an SGX filing on Wednesday (23 December).
The joint venture is in line with the strategy of Keppel Land China to deepen its presence in Shanghai, which is one of its focus cities in China.
Situated near a Metro 11 station, the site can yield over 1,600 housing units. It is owned by a fully-owned unit of Taicang Zhuchong Business Consulting (JVCo).
The joint venture will see Shanghai Fengwo subscribe for a 99% equity interest in Taicang Xinwu Business Consulting, a fully-owned unit of Gemdale Shanghai, for RMB9.9 million (S$2 million) as well as acquire the remaining 1% equity interest from Gemdale Shanghai for RMB1 (S$0.20) in cash.
Taicang Xinwu owns a 15% equity interest in the JVCo, while Shenzhen Shengjun and Gemdale holds an indirect interest of 30% and 55% in the JVCo respectively.
Meanwhile, Shanghai Fengwo extended a RMB648 million (S$132 million) loan to Taicang Xinwu, which has been used for the site’s acquisition and development.
The consideration for the acquisition was arrived at on a willing buyer, willing seller basis, after taking into account the adjusted net asset value of Taicang Xinwu’s interest, based on the agreed value of the site attributable to its interest, which stood at around RMB658 million (S$134 million) as at 15 December 2020.
Tham Sai Choy, a director of Keppel Corporation, has a shareholding interest of less than 1% in the holding company of Shenzhen Shengjun Investment Management.
Temasek Holdings has a deemed interest in about 2% of the holding company of
Shenzhen Shengjun Investment Management via certain subsidiaries and associated companies.
Keppel Corporation does not expect the transaction to materially affect its net tangible assets per share or earnings per share for the current financial year.
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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
