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CapitaLand to sell stake in HK-listed Central China Real Estate

CAPITALAND has entered into an agreement to sell its entire 24.09 per cent stake in Hong Kong-listed Central China Real Estate (CCRE) to CCRE's existing shareholder, Joy Bright Investments.

At a price tag of HK$2.83 billion, this works out to HK$4.30 per share.

CCRE last traded at HK$3.45 per share on June 28.

Lucas Loh, president (China) for CapitaLand Group, said: "As part of our proactive portfolio management, we regularly review our investments and evaluate opportunities that will enhance returns and complement the group's strategy. CapitaLand's stake in CCRE has generated stable returns over the years. In view that CCRE operates primarily in Henan province, outside of CapitaLand's core city clusters, the divestment would allow us to re-allocate capital to other opportunities in our core businesses."

CapitaLand shares closed at S$3.65 on Monday, up 12 cents.