Keppel Land divests stake in Surabaya property company for $57m

It’s recycling assets to seek higher returns.

Keppel Land has inked a shares sales agreement to divest its 80% effective stake in an Indonesian joint venture company, PT Sentral Tunjungan Perkasa, to PT Indadi Land.
The total consideration for the transaction amounts to approximately Rp 529 billion ($57 million).

The joint venture company holds a prime site of approximately 23,300 sm in Surabaya's central business district. The divestment will yield an after-tax profit of about S$32 million for Keppel Land.

"The divestment is in line with the Company's strategy to recycle assets to seek 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," said Sam Moon Thong, President (Indonesia), Keppel Land