Keppel Corporation, through its real estate division, has agreed to divest its 35% stake in Chengdu Taixin Real Estate Development Co., Ltd. to Vanke (Chengdu) Enterprise Co., Ltd.

Chengdu Taixin, which is a joint venture (JV) between Keppel and Vanke, owns V City, a 16.7-hectare residential project in Chengdu, China.

Vanke will pay a cash consideration of around RMB504 million ($94 million) for Keppel’s stake. The consideration will be made in a single tranche and no later than Oct 31.

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The consideration factored in Chengdu Taixin’s net asset value (NAV) that was confirmed in July by a third-party audit firm. It also took into account the shares’ book value and adjusted NAV of about $99 million as at June 30.

The completion of V City in 2020 and the selling out of all 5,399 residential units and 356 street-front shops of the development were also taken into consideration. V City’s remaining inventory comprises parking lots and a market.

Over the years, Keppel has recognised cumulative profits after tax of approximately $57 million from the sales of residential units, street-front shops and other amenities at V City, prior to the divestment.

The divestment is expected to be completed within 4Q2023 and is in line with Keppel’s asset monetisation plans to unlock value that can be invested to pursue new opportunities.

So far, Keppel’s real estate division has monetised over $3 billion of assets in China since 2017, and recognised profits of more than $1 billion.