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CapitaLand sells land in Ahmedabad, ups shareholding in Chennai serviced residences

CAPITALAND Limited has sold off land in India that it owned through a subsidiary for INR528.5 million (S$10.8 million) to third parties, the developer announced in a Singapore Exchange filing on Tuesday.

CapitaLand divested 100 per cent of its equity interest, which comprised its 5.32 million shares of INR10 apiece in Indian company Citadines Ahmedabad Aparthotel through two subsidiaries, Ascott International Management and Ascott International Management (2001).

Citadines Ahmedabad Aparthotel owns a land parcel located in Ahmedabad. It has no development activities.

CapitaLand said it sold the land to "enhance capital productivity and strengthen CapitaLand's capability to pursue other projects which will generate returns for its shareholders".

The sale was made on a willing buyer and willing seller basis.

In a separate announcement, CapitaLand said it has increased its ownership of a serviced residence property in Chennai which it majority owns through Ascott International Management.

Rattha Somerset Greenways (Chennai), the company that owns the residence Somerset Greenways Chennai, allotted an additional 61,649 new shares of INR10 per share, at par, at an issue price of INR600.80 to Ascott and another shareholder for a total of INR37,038,719.20.

CapitaLand's holdings now stand at 1,908,715 equity shares of par value INR10 per share, or 51 per cent - the same as before the move in percentage terms.

Proceeds of the share increase will be used to fund the general working capital requirements of Rattha Somerset Greenways (Chennai).

Both the sale and the share increase are 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, 2018.

CapitaLand shares rose four Singapore cents to close at S$3.69 on Tuesday, before the announcement was made.