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CapitaLand sells HK serviced residence for HK$581.8m

MAINBOARD-LISTED CapitaLand has sold a serviced residence in Hong Kong for HK$581.8 million (S$101 million) to an unnamed third party, according to a bourse filing on Friday.

The blue-chip developer said that it has divested fully from a unit that owns Citadines Mercer Hong Kong in Sheung Wan, Hong Kong, in line with a strategy to rejig the property portfolio.

CapitaLand added that the price tag - which was reached on a willing buyer, willing seller basis - took into account the net asset value of the property owner, as well as the agreed value of Citadines Mercer Hong Kong, which was pegged at HK$740.8 million as at Oct 31.

CapitaLand’s wholly owned serviced residence unit, The Ascott, had bought the property - now deemed to be at “the optimal stage of its life cycle” - for HK$545 million, back in 2014.

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

The counter shed S$0.02, or 0.54 per cent, to S$3.71, before the announcement.