Keppel Land China, a unit of Keppel Land, on Thursday said it will sell its entire stake in a Chinese waterfront residential and recreational development for about 2.9 billion yuan (about S$597.4 million).
As per the deal, Keppel China Marina Holdings (KCMH) will sell its indirectly held 80 percent effective stake in Sunsea Yacht Club (Zhongshan) Co to Delight Prime.
The transaction will yield for Keppel Land China a divestment gain of about S$290 million upon completion, which is expected to take place by end-2017, the company said in a regulatory filing.
Sunsea is a joint venture company that owns and develops Keppel Cove, an integrated residential and marina lifestyle development on Modao Island in Zhongshan, 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," the company said.
According to Keppel, the unaudited net asset value of KCMH was around negative S$28.4 million as at September 30.
Shares in Keppel Corp fell about 1 percent to S$7.38 on the Singapore Exchange. The stock has risen 28 percent so far this year.