CapitaLand entered a deal to divest its entire 24.09 percent stake in Hong Kong-listed Central China Real Estate (CCRE) to Joy Bright Investments, an existing CCRE shareholder, for HK$2.83 billion, or around S$496 million, the Singapore-listed developer said in a filing to SGX Monday.
The sale price is equivalent to HK$4.30 a share, compared with CCRE’s last traded price of HK$3.45 on Friday, the filing said.
“CapitaLand’s stake in CCRE has generated stable returns over the years,” Lucas Loh, president for China at CapitaLand, said in the statement.
“In view that CCRE operates primarily in Henan Province, outside of CapitaLand’s core city clusters, the divestment would allow us to reallocate capital to other opportunities in our core businesses,” he added, noting that the company has an annual divestment target of at least S$3 billion.
The five core city clusters in China are Beijing/Tianjin, Shanghai/Hangzhou/Suzhou/Ningbo, Guangzhou/Shenzhen, Chengdu/Chongqing/Xi’an and Wuhan, the filing said.
The deal is expected to be completed in the third quarter of this year, the filing said.
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