CapitaLand, through its associates, has agreed to divest its interest in the companies which hold five business park properties and Rock Square mall in China to CapitaLand Retail China Trust (CRCT).
Capitaland said the agreed value of the properties, arrived at on a willing-buyer and willing-seller basis, amounts to RMB8,130 million (S$1,653.1 million) on a 100% basis. ”The agreed property value represents a 2.9% premium to CapitaLand’s valuation in December 2019.”
CapitaLand’s stake comprises:
- a 23% interest in Ascendas Xinsu Portfolio, Suzhou; Ascendas Innovation Towers, Xi’an; and Ascendas Innovation Hub, Xi’an (80%) held through Ascendas China Business Parks Fund 4 (ACBPF 4);
- an 80% interest in Singapore-Hangzhou Science & Technology Park Phase I and Phase II, Hangzhou; and
- a 49% interest in Rock Square, Guangzhou.
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The proposed divestment, which is conditional upon the approval of CRCT’s independent unitholders, is expected to be completed by 1Q 2021. Upon completion, CapitaLand is expected to receive proceeds of about S$541.7 million and realise an estimated gain of S$35.6 million. ACBPF 4, managed by CapitaLand, will draw to a close after fully divesting all its assets.
Upon CRCT’s acquisition of the properties, CapitaLand will enter into a 49:51 joint venture with CRCT on Ascendas Xinsu Portfolio at an agreed property value of RMB2,265 million (S$460.6 million) on a 100% basis.
Located in the well-established Suzhou Industrial Park, Ascendas Xinsu Portfolio comprises six locations with 61 buildings, including business parks and industrial portion. The sprawling portfolio has a total gross floor area of 373,334 square metres.
“The proposed divestment of the five business park properties in China to CRCT is the latest illustration of the robust asset pipeline and value creation opportunities arising from CapitaLand’s combination with Ascendas-Singbridge last year. Recycling these quality assets into CRCT will enable CapitaLand to unlock capital, realise development profits and tap recurring yield through our fund management platform,” said Lee Chee Koon, Group CEO, CapitaLand Group.