Major stakeholders quit Sparkle Bright for $516.9m
Keppel Land China and Alpha signed an agreement with Star Champ Development, a wholly owned subsidiary of the Chongbang Group, for the transaction. Sparkle Bright owns retail mall Life Hub @Jinqiao, a mixed-use development in Shanghai.
Chongbang owns the other 20 per cent stake in Sparkle. Keppel Land China holds a 42.5 per cent interest, while Alpha Asia Macro Trends Fund II and a co-investor hold the remaining 57.5 per cent in the 80 per cent stake.
Keppel Land China and Alpha are wholly owned subsidiaries of Keppel Land Limited and Keppel Capital Holdings respectively.
Life Hub, in Pudong, has about 114,730 sqm gross floor area, with shops spread over 10 low-rise buildings. There is also a 10-storey office tower with a retail podium. The retail mall is 97 per cent leased while the office tower is fully occupied.
Expected to be completed by the end of this month, the divestment is expected to give Keppel Land a gain of about S$73 million. CEO Ang Wee Gee says the divestment is in line with the group’s strategy to continually recycle assets to seek higher returns.
Since acquiring the property in 2013, Keppel Land China and Alpha have been working with the mall owner to continuously enhance the tenant mix and shopping experience.