CapitaLand, the largest property developer in Southeast Asia, has announced that it will acquire Somerset Grand Cairnhill (pictured) from associate Ascott Residence Trust for S$359 million.
The property will be jointly redeveloped by CapitaLand Residential Singapore and Ascott Ltd into a serviced residence with a hotel licence as well as a high-end residential project.
Once the new development is completed, CapitaLand is expected to sell the serviced residence component, which is expected to be delivered in 2017, back to Ascott Residence Trust for S$405 million.
In addition, CapitaLand will sell Ascott Raffles Place Singapore and Ascott Guangzhou to Ascott Residence Trust for S$283.3 million.
CapitaLand expects a net gain of about S$51.4 million from the two divestments and around S$42.7 million from the share of Ascott Residence Trust’s gain from the sale of Somerset Grand Cairnhill.
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