Keppel to acquire 30% stake in Guangzhou office and retail development for HK$141.4m
Shares of Keppel Corp rose 1.66% or S$0.100 to S$6.14 at around 11.30am Singapore time, following the Tuesday morning announcement.
Keppel Corporation’s property arm is looking to take up a 30% stake in Win Up Global, which will soon own Westmin Plaza, an office and retail development in Guangzhou. The investment amount will be around HK$141.4 million.
Keppel Land China, a wholly-owned subsidiary of Keppel Land, has entered into a share sale and shareholder loan transfer agreement with Chinese real estate developer Topchain Group, Keppel said in a filing on Tuesday morning. The remaining stake in Win Up Global will continue to be held by Topchain.
Shares of Keppel Corp rose 1.66% or S$0.100 to S$6.14 at around 11.30am Singapore time, following the Tuesday morning announcement.
Westmin Plaza is located at Liwan District, in Guangzhou, China. The plaza has a gross floor area of 42,533 square metres (or 457,821 square feet) spread across three storeys of retail space and 14 storeys of office space.
The commercial building is within a five-minute walk to Ximenkou Station on Metro Line 1, said Keppel.
Ben Lee, president of Keppel Land China commented in the media release: ‘This is our first partnership with Topchain Group…The rejuvenation of Westmin Plaza will allow us to capture growth opportunities in Guangzhou’s growing commercial real estate market as the city continues to develop into an international metropolis.’
‘This acquisition is in line with Keppel Land China’s strategy to grow our commercial portfolio in China, with a focus on first-tier cities. It also marks our maiden entry into Guangzhou, one of the cities with the fastest economic growth in China,’ Lee added.
The transaction is not expected to have a material impact on the net tangible assets per share or earnings per share of Keppel for the current financial year, Keppel said.
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