Keppel Land China in JV to acquire, develop Nanjing mixed-use site

On Wednesday, Keppel Land China unit Shanghai Ming Bu Industrial Co (SMBI) entered a share purchase agreement with Yincheng International Holding Co to acquire a 25% stake in the JV company Nanjing Zhijun Property Development Co for 250 million yuan.

The remaining 75% stake in the JV company will be held by Yincheng and co-investor Jiangsu Aidi Property Development Co.

The development cost will be in excess of five billion yuan ($990 million), said Keppel.

After completing the 25% stake acquisition, SMBI will advance a shareholders' loan of 464 million yuan to Nanjing Zhijun for the acquisition and development of the site. The site is expected to be acquired by Nanjing Zhijun by end-December 2019.

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Keppel said the deal is not expected to have a material impact on its net tangible assets per share or earnings per share for the current financial year.

Shares in Keppel closed two cents lower at $5.92 on Wednesday before the announcement.

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