Singapore’s Keppel Land is divesting 100% equity interest in First King Properties Ltd (First King) to ZGC King William Holdings, an entity wholly-owned by a fund managed by London and Oxford Capital Markets Ltd for £73.6 million (appr. S$131.1 million).
First King owns a freehold nine-storey office building in the City of London at 75 King William Street.
Keppel Land said the purchase price comprises £42.3 million for the sale shares which is subject to completion adjustments, and approximately GBP 31.3 million for repayment of shareholder loans of an equivalent amount extended to First King by Fleuters Pte Ltd, a wholly-owned subsidiary of Keppel Land.
The sale shares consideration and the loan repayment will be fully paid in cash upon completion of the divestment, said Keppel Land.
Keppel Land has acquired the property for £91 million in 2015.
”Following completion of the divestment, which is expected to take place in the first quarter of 2021, the gain on disposal is estimated to be approximately £6.8 million, including fair value adjustment to be recognised in the second half of the financial year ending 2020, and First King will cease to be a subsidiary of the company. Over the holding period, the total profit to the company for the investment since acquisition (including rental income and capital gains generated by the Property) is about £37.2 million,” said in the statement.