CapitaLand subsidiary acquires remaining 39.24% stake in Eurimeg

Takeover empowers group to exercise full management control over decisions for serviced residences.

CapitaLand Limited (“CapitaLand”) said that its wholly-owned subsidiary, Oriville SAS (“Oriville”) has acquired (the “Acquisition”) the remaining 39.24% stake in Eurimeg SA (“Eurimeg”) from its existing shareholders which are unrelated to CapitaLand (the “External Parties”). Prior to the Acquisition, CapitaLand held a 60.76% stake in Eurimeg.

Eurimeg, a company incorporated in France, holds a 90% stake in three subsidiaries (the “Subsidiaries”) that hold the serviced residences: Citadines London South Kensington, Citadines Bruxelles Toison d’Or and Citadines Barcelona Ramblas respectively (the “Serviced Residences”). The remaining 10% stake in the Subsidiaries is held by Oriville, as stated in a CapitaLand report.

The aggregate cash consideration of €15.0 million (approximately S$25.6 million) for the Acquisition was arrived at on a willing-buyer willing-seller basis, taking into account, amongst other factors:

(a) the adjusted consolidated net asset value of Eurimeg of €39.3 million (approximately S$67.2 million) as at 30 June 2010, which has taken into consideration, the valuation of the Serviced Residences (conducted by HVS International and commissioned by The Ascott Limited, a wholly-owned subsidiary of CapitaLand) at €80.3 million (approximately S$137.3 million) as at 1 July 2010; and

(b) the assignment to Oriville of the debt of €1.2 million (approximately S$2.1 million) payable by Eurimeg to the External Parties.

Following the Acquisition, Eurimeg and the Subsidiaries have become wholly-owned subsidiaries of CapitaLand.

The Acquisition will provide CapitaLand Group the ability to exercise full management control over decisions for enhancement of the Serviced Residences.