CapitaLand pares stake in Guangzhou development unit for S$78.6m

CAPITALAND on Monday said that it and other shareholders have, through a series of transactions, divested an aggregate 40 per cent equity stake in Guangzhou Kai Ke Xing Mao Real Estate Development (GKK) to an unrelated purchaser for RMB395.7 million (S$78.6 million).

CapitaLand held its stake in GKK through its wholly-owned subsidiary, CLC Investment Seven.

GKK owns a mixed-use site located in Huangpu district in China's Guangzhou province; plans had been drawn to develop an integrated development  comprising offices, retail, apartments, serviced residences and low-density strata-office components.

Through the transaction, CapitaLand has unlocked capital for reinvestment and GKK has secured an additional capital partner for its project, the announcement said.

The adjusted net asset value (NAV) of GKK is RMB989.1 million; the consideration was arrived at by taking into account 40 per cent of the adjusted NAV.

Following the completion of the transaction, CapitaLand's interest in GKK has decreased to 45 per cent; GKK has ceased to be a subsidiary of CapitaLand and has become an associated company instead.

CapitaLand said the transaction is not expected to have any material impact on the net tangible assets or earnings per share of the CapitaLand group for the financial year ending Dec 31, 2020.