Keppel Land divests stake in Surabaya firm for $57m

Romesh NavaratnarajahJanuary 12, 2017

Keppel Land logo

Keppel Land considers Indonesia as one of its growth markets. 

Singapore-based developer Keppel Land has agreed to sell its 80 percent stake in an Indonesian joint venture company, PT Sentral Tunjungan Perkasa, for Rp 529 billion (S$57 million).

The company is selling its stake to PT Indadi Land, and expects an after-tax profit of around S$32 million.

PT Sentral Tunjungan Perkasa owns a 23,300 sq m prime site in Surabaya’s central business district.

Keppel Land President (Indonesia) Sam Moon Thong explained that the divestment is in line with its strategy to recycle assets for higher returns.

“Indonesia is one of Keppel Land’s key growth markets and we will continue to explore opportunities to scale up our presence in Greater Jakarta,” he said.

In fact, the company recently announced its “partnership with Metland to develop about 450 landed homes on a 12ha site within Metland Puri, a township located adjacent to West Jakarta”, he added.

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

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