CapLand pares Australand stake for A$426m

PROPERTY giant CapitaLand yesterday raised A$426 million (S$485 million) by selling a third of its stake in Australian property developer Australand. With this sale, the company's stake in Australand will go from 59.1 per cent down to 39.1 per cent, though Australand remains its single largest investment outside Singapore and China.

The proceeds will be used to invest in opportunities in its core markets in Singapore and China, as well as for general working capital purposes, the company said yesterday.

CapitaLand president and chief executive Lim Ming Yan said in a statement that the partial sale "will improve Australand's liquidity and attract more institutional investors". "We are comfortable with our remaining interest in Australand and it will remain a key investment for us."