CapitaLand rids stake in China co for S$117 mln, to make S$33 mln net gain

By BT

CapitaLand Limited said on Monday that its subsidiary, CapitaLand (Sichuan) Holdings Pte Ltd, has sold its entire 50 per cent stake in Sichuan Zhixin CapitaLand Co, Ltd (SZC) to Chengdu Zhixin Industrial (Group) Co, Ltd. (CZI) for RMB570 million (about S$117 million) in cash.

SZC is a property development company in China. It is a joint venture between CapitaLand and CZI, which holds the remaining 50 per cent.

'The sale is part of CapitaLand Group's ongoing strategy of capital productivity,' the company said.

The sale is expected to be completed in the third quarter of 2010.

SZC will cease to be an associated company of CapitaLand and CapitaLand will recognise in its Group consolidated financial statements a net gain of about S$33 million.