Singapore developer Keppel Land is selling its 51 percent stake in Jakarta Garden City (pictured) to its joint venture partner PT Modernland Realty for S$290.5 million.
To be completed in the fourth quarter of this year, the sale would yield Keppel Land around S$186.0 million in net proceeds.
Located on a 270ha site in East Jakarta, the township project is a 51:49 joint venture entered by Keppel Land and Modernland in 2004. Currently, about 93 percent of the 1,287 homes and shophouses launched have been sold.
“The joint venture with Modernland is another example of how Keppel Land works with local partners to add value as well as raise the quality and standards of our developments. In this case, we have successfully developed Jakarta Garden City into a multi-award winning township in Indonesia,” said Ang Wee Gee, CEO of Keppel Land.
“The sale will immediately unlock value in Jakarta Garden City for Keppel Land and enable us to pursue other opportunities in Indonesia, with a focus on Jakarta. We believe that Indonesia’s steady economic growth underpinned by sound fundamentals will continue to drive demand for investment-grade offices and quality homes. Keppel Land will continue to play a part in Indonesia’s growth story.”
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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