SINGAPORE (May 7): Keppel Corp’s China property division is selling entire stake in Keppel Bay Property Development (Shenyang) Co. (KBPDS) for RMB 503 million ($105 million).

KBPDS owns a residential township project in Hunnan New District, Shenyang city, China.

Keppel Land China’s subsidiaries Da Di Investment and Shanghai Merryfield Land Co have entered into a sale and purchase agreement on Monday to divest their respective interests of 80% and 20% stake in the township to Shenyang Vanke Property Development Co.

As at April, unaudited net asset value of KBPDS was RMB326 million.

Keppel Corp says 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.

Completion of the divestment is expected to take place by June. Following the divestment, KBPDS will cease to be a subsidiary of the company.

None of the directors or controlling shareholders of the company has any interest, direct or indirect, in the above transaction.

Shares in Keppel closed 3 cents higher at $8.13 on Monday.