Fashion
Keppel Land China and Alpha signed an agreement with Star Champ Development Ltd, a wholly-owned subsidiary of the Chongbang Group (Chongbang), for the transaction.
Sparkle Bright owns retail mall Life Hub @Jinqiao (Life Hub), a mixed-use development in Shanghai, China. Chongbang owns the other 20 per cent stake in the development.
Keppel Land China holds a 42.5 per cent interest, while Alpha Asia Macro Trends Fund II and a co-investor hold the remaining 57.5 per cent in the 80 per cent stake in Sparkle Bright.
Keppel Land China and Alpha are wholly-owned subsidiaries of Keppel Land Limited and Keppel Capital Holdings, respectively.
Life Hub features about 114,730 sm gross floor area of retail shops spread over 10 low-rise retail buildings as well as a 10-storey office tower with a retail podium. It has been one of the popular attractions in Shanghai’s Pudong District since 2009.
The retail mall is currently 97 per cent leased while the office tower is fully occupied.
The divestment is expected to be completed by the end of September 2016. The Group expects to recognise a gain of approximately S$73 million from the divestment.
Keppel Land CEO Ang Wee Gee said the divestment is in line with Keppel Land’s strategy to continually recycle assets to seek higher returns.
“Keppel Land China’s collaboration with Alpha reflects how different business units are working closely together to harness the collective strengths of the Keppel Group,” Gee said.
Since the acquisition of the property in 2013, Keppel Land China and Alpha have been working with the mall operator to continuously enhance the tenant mix and shopping experience.
Christina Tan, CEO of Keppel Capital and managing director of Alpha, disclosed they have been able to realise an internal rate of return of over 20 per cent on the sale of the development.
