Keppel Land and its subsidiary Double Peak Holdings say they are divesting their 100 per cent stake in Greenfield Development for US$57.4 million in cash, reports the Straits Times.
Greenfield Development wholly owns Straits Greenfield, which has the right to build and operate a hotel in Myanmar, the 6 March report says.
The consideration of US$57.4 million exceeds Greenfield Development’s net asset value of US$43.9 million as at end-February 2023, said Keppel Land’s parent Keppel Corp in a press release on Monday.
The group added that its property arm’s divestment is in line with Keppel Corp’s asset monetisation plans to unlock capital that can be channelled towards new growth opportunities, and that the divestment is expected to be completed by the first half of 2023, after which both Greenfield Development and Straits Greenfield will no longer be subsidiaries of Keppel Corp.
Keppel Land says it is committed to quality living and sustainable urban needs.
As they note, their track record speaks for itself. “We brought waterfront living to a whole new level with the iconic residences at Keppel Bay and Marina Bay. We redefined Singapore’s skyline and changed the face of business with landmark developments such as Marina Bay Financial Centre and Ocean Financial Centre.”
Prior to this latest decision, the company had a longstanding presence in Myanmar of over 20 years,
“We have established ourselves as the choice accommodation provider with our deluxe hotels under the Sedona brand in Yangon and Mandalay,” they note, prior to this move, noting that together with local partner Shwe Taung Group, they were also developing Junction City Tower, the office tower component of the landmark Junction City integrated development, which was intended to meet the demand for high-quality office space in Yangon.
Shwe Taung is one of the leading corporations in Myanmar. They have a diversified portfolio of business interests with a focus on six core sectors – building materials, distribution, engineering and construction, infrastructure investments, lifestyle, and real estate.
Myanmar’s hotel industry has been suffering in the wake of the COVID-19 lockdowns and the 2021 military coup that have prompted a major drop in visitors. In addition, a number of foreign investors have been heading for the exit given the significant economic downturn and security concerns.
