Frasers Centrepoint unit sells stake in Beijing property firm

SINOMAX International Pte Ltd (Sinomax), an indirect wholly owned subsidiary of Frasers Centrepoint Limited, has entered into a conditional agreement to sell its entire stake in Beijing Sin Hua Yan Real Estate Development Co Ltd (BJSHY) to Beijing Haina Junan Investment Co Ltd for about 357.4 million yuan (about S$76.6 million).

BJSHY owns a retail mall cum office building with a net lettable area of 156,336 square feet known as Crosspoint, located along the Second Ring Road in Beijing.

"The divestment is in line with the strategy of the group of streamlining and divesting its non-core business to focus on the main activities of the group," said Frasers Centrepoint on Wednesday.

The consideration was arrived at on a "willing-buyer, willing-seller basis", and is based on the unaudited net asset value (NAV) of BJSHY as at July 31, 2014, taking into account the valuation of the property.

"The consideration is subject to adjustments post-completion in accordance with the terms of the agreement, including but not limited to adjustment to take into account the NAV of BJSHY as at the date of completion of the divestment," Frasers Centrepoint said.

The sale is not expected to have any material effect on the net tangible assets per share of the group for the current financial year.

Frasers Centrepoint's counter closed one Singapore cent lower at S$1.66 on Wednesday, before the announcement was made.