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CapitaLand raises stake in LFIE with China residential development project

CAPITALAND on Tuesday announced that it has acquired an additional 34.94 per cent stake consisting of 76.1 million shares in LFIE Holding from another shareholder of LFIE which is unrelated to CapitaLand for 684.1 million yuan (S$132.8 million).

LFIE owns a 100-per-cent stake in project company Guangzhou Li Kai Real Estate Development Co through its subsidiaries, Kistor and LFIE Districenter. The project company owns a residential project under development in Panyu District, Guangzhou, China.

The consideration took into account a 34.94 per cent share of the adjusted net asset value of LFIE and its subsidiaries, being HK$742.1 million (S$128.4 million), and the assignment of a shareholder loan of HK$21.8 million.

The consideration is subject to post-completion adjustments. Following the acquisition, CapitaLand's interest in LFIE and each of the LFIE subsidiaries has increased from 44.98 per cent to 79.92 per cent. LFIE and the LFIE units have also become subsidiaries of CapitaLand.