Keppel Land, alongside its partner Equity (CP) Private Limited, announced yesterday that it has entered into an agreement to divest Equity Plaza for a cash consideration of S$550m. The buyer of the 22-year old building is a consortium led by GSH Corporation Limited, of whom Mr Sam Goi is the Executive Chairman.

The S$550m price translates to S$2,181 psf of net lettable area – a decent level in our view – and is anticipated to result in a divestment gain of S$59.5m and cash proceeds of S$195.3m to Keppel Land for its 65% stake in Equity Plaza.

Maintain BUY with an unchanged fair value estimate of S$4.09 (30% RNAV disc.).

Source: OCBC Research - 26 Jun 2014