SembCorp Industries : Divestment of Wuxi Residential Property Unit Under Semcorp’s Urban Development Business

DIVESTMENT OF WUXI RESIDENTIAL PROPERTY UNIT UNDER SEMBCORP'S

URBAN DEVELOPMENT BUSINESS

Wuxi, July 24, 2018 - Sembcorp Industries (Sembcorp) announces that Singapore Wuxi Investment Holdings (SWIH), a company in which Sembcorp's wholly-owned subsidiary

Sembcorp Development owns a 92.6% effective stake, has entered into an agreement to sell its entire 49% equity interest in the capital of Wuxi Singapore Property Investment Co (WSPI) to Golden Concord and Shanghai Sunac Real Estate Development Co, for RMB 323 million (approximately S$68 million).

WSPI is a property holding company incorporated in China which holds, through its China incorporated subsidiary, a residential development in Wuxi named Hongshan Mansion, which is currently in development. The sale consideration will be fully satisfied in cash and was determined taking into account the market price of the remaining undeveloped land and the unsold residential units. Completion of the sale is expected by the end of 2018, upon which WSPI will cease to be a subsidiary company of SWIH, Sembcorp Development and Sembcorp Industries.

This sale is expected to result in a net gain for SWIH of S$13 million, and a net gain for Sembcorp of S$12 million for the financial year ending December 31, 2018.

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