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Thursday, December 24, 2020 – 8:55 am
KEPPEL Land is selling its 100 per cent stake in First King Properties, which owns an office building in London, for £ 73.6 million (S $ 131.1 million) in cash.
The transaction is expected to be completed in the first quarter of next year, Keppel Corp said in a regulatory filing Thursday.
The buyer is ZGC King Williams Holdings, wholly owned by a fund managed by London and Oxford Capital Markets Limited.
First King owns a nine-story office building in the City of London, at 75 King William Street.
The purchase price includes around £ 42.3 million for First King shares, subject to completion adjustments. It also includes some £ 31.3 million to repay shareholder loans that Fleuters, a Keppel Land subsidiary, had made to First King.
The consideration for First King’s shares took into account the adjusted net asset value attributable to the shares for sale as of December 23, based on the property’s agreed value of £ 128 million, Keppel Corp said.
Keppel Land acquired the building for £ 91 million in 2015. The gain on disposal is estimated to be £ 6.8 million, including the fair value adjustment to be recognized in the second half of the financial year ending in 2020, said Keppel Corp
He added that over the holding period, the total profit to the conglomerate from the investment since the acquisition, including rental income and capital gains generated by the property, is approximately £ 37.2 million.
“The divestment is in line with the company’s plan to monetize the identified assets and apply the balance sheet space that is freed up for new growth opportunities under its Vision 2030,” noted Keppel Corp.
Shares of Keppel Corp closed at S $ 5.37 on Wednesday, up S $ 0.07 or 1.3%.
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