A Keppel Land China Ltd. subsidiary agreed to sell a project company developing a residential township in Shenbei New District, Shenyang City, China, for 980 million yuan.

Keppel China Township Development Pte Ltd.'s sale and purchase agreement to sell Keppel Township Development (Shenyang) Co. Ltd. to Shenyang SUNAC Xinxing Enterprise Management Ltd. was signed June 15.

Keppel Land said the divestment is part of its asset recycling strategy to focus on high-growth Chinese cities.

The transaction is expected to deliver a gain of roughly S$43 million when it completes in June, according to the seller's parent, Singapore-based conglomerate Keppel Corp. Ltd.

As of June 15, US$1 was equivalent to 6.44 Chinese yuan and S$1.35.