CapitaLand Limited has announced the divestment of a 144,657 sq m residential site in Shanghai’s Qingpu District in China, for a cash consideration of RMB807.7 million (S$152.6 million).
CapitaLand’s wholly-owned unit, CapitaLand China Holdings (CCH), has entered into a sale-and-purchase agreement with an unrelated party, for the disposal of its 100 percent stake in BR Properties Ltd for approximately S$152.6 million. BR Properties holds a 95 percent interest in Shanghai Guang Nan Real Estate Development Co, which owns the residential site.
“In line with our stated growth strategy for the Group, we are focused on acquiring and developing choice real estate properties, or realising value from investments which have matured such as the residential site in Shanghai’s Qingpu District,” said Mr. Liew Mun Leong, President and CEO of CapitaLand Group.
“The capital recycled from the divestments will be deployed for growth opportunities as we build on our successes in the respective real estate sectors. For example, in Singapore we continue to increase our presence with the acquisition and development of prime residential sites and quality shopping malls. In the office sector, we will redevelop the Market Street Car Park into a modern grade A office tower.”
Meanwhile, CCH also announced last week the divestment of Hilton Double Tree Hotel in Kunshan, China for a cash consideration of RMB257.5 million (S$49 million).
The property comprises 398 hotel rooms managed by Hilton, with a gross floor area (GFA) of around 40,196 sq m. CapitaLand is expected to recognise a net gain of around S$18 million upon completing the acquisition.
“I am pleased with the profitable transaction of the Shanghai residential site, which comes close on the heels of the recently announced divestment of Hilton Double Tree Hotel in Kunshan. Both transactions are part of CapitaLand China’s ongoing strategy of capital productivity,” said Mr. Jason Leow, Chief Executive of CCH.
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