CapitaLand to dispose of Shanghai CapitaLand for US$99.75m

By CARINE LEE


CapitaLand Limited on Tuesday announced that, through its wholly-owned subsidiary, Yorksure Pte Ltd, it will dispose of its entire stake in Shanghai CapitaLand Xin Chuang Real Estate Development Co Ltd (SCXC) for 852 million yuan (US$99.75 million).

SCXC's sole asset is a 71,613 sqm property, in Zhabei District of Shanghai, China, which is currently under construction.

CapitaLand's carrying value of the sale stake based on the management accounts of SCXC as of October 31, 2011 was 600 million yuan. CapitaLand is expected to recognise a net gain of approximately S$40 million upon completion of the sale.

The sale is subject to approval from the Chinese government and is expected to take place by the first quarter of 2012.

The unrelated buyer has paid 10 per cent of the consideration and will pay another 30 per cent within two days. The remaining 60 per cent will be paid upon completion of the sale.

The sale is part of the group's ongoing strategy of capital productivity, it said.