CapitaLand sells off entire stake in Beijing CapitaLand Xin Ming

Total amount consideration is S$97m.

According to a release, CapitaLand announced the sale of its entire 100% stake in Beijing CapitaLand Xin Ming Real Estate Development Co., Ltd. for a cash consideration of RMB502 million (approximately S$97 million).

BCXM, a company incorporated in the People’s Republic of China (“PRC”), owns a residential site under development with gross floor area of 14,364 square metre in Beijing’s Dong Cheng District, PRC.

The Sale is made as part of CapitaLand Group’s ongoing strategy of capital productivity. The Sale is made by CapitaLand through its wholly-owned subsidiary, Eider Pte. Ltd. which has entered into a sale and purchase agreement with an unrelated third party.

Eider owns 100% of BCXM’s registered capital representing RMB220 million (approximately S$43 million). The sole asset of BCXM is the Property.

The Consideration was arrived at on a willing-buyer and willing-seller basis, taking into account, amongst other factors, the agreed value of the Property at RMB770
million (approximately S$149 million) and settlement of outstanding liabilities (including bank loan) of up to RMB268 million (approximately S$52 million).

CapitaLand's carrying value of the Sale Stake based on the management accounts of BCXM as of 30 November 2012 was RMB199 million (approximately S$39 million).

The completion of the Sale is subject to the approval from the PRC regulatory authorities and is expected to take place in the first quarter of 2013.

A sum of RMB5 million (approximately S$1 million) has been paid by the Purchaser and a further sum of RMB20 million (approximately S$4 million) will be paid within five days upon signing of the SPA. The balance of RMB477 million (approximately S$92 million) will be paid on Completion.