First King owns a freehold nine-storey office building in the City of London at 75 King William Street.
Of the consideration, ZGC King William will pay some £42.3 million to West Gem as consideration for the sale shares, and another £31.3 million to repay the shareholder loans extended to First King by Fleuters.
Both will be fully paid in cash upon the completion of the divestment, which is expected to take place in 1Q2021.
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The consideration of the sale shares was arrived at on a willing buyer willing seller basis, which took into account the adjusted net asset value attributable to the sale shares as at Dec 23, based on the agreed value of the property of £128 million.
Keppel Land acquired the property for £91 million in 2015.
The divestment will see a gain on disposal of some £6.8 million, including fair value adjustment to be recognised in the 2HFY2020.
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First King will then cease to be a subsidiary of Keppel Corporation.
Over the holding period, Keppel Corporation has seen about £37.2 million in total profit since its acquisition.
Shares in Keppel Corp closed flat at $5.37 on Dec 23.
