CapitaLand divests stakes in six China properties for $1.65b

Its interests will be acquired by CapitaLand Retail China Trust, in which it holds a 36.23% interest.

CapitaLand has declared a massive shift in its portfolio in China, divesting interests in five business park properties and Rock Square mall to local unit CapitaLand Retail China Trust (CRCT) for $1.65b (RMB8.13b) on a 100% basis.

In a press release, the CapitaLand announced that it is divesting its interest in Ascendas Xinsu Porftfolio at Suzhou, Ascendas Innovation Towers, Xi’an, and Ascendas Innovation Hub, Xi’an, which CapitaLand holds a 23% interest through Ascendas China Business Parks Fund 4 (ACBPF 4).

They are also divesting an 80% interest in the Singapore-Hangzhou Science & Technology Park Phase I and II, and a 49% stake in Rock Square, Guangzhou.

CapitaLand has a deemed interest of approximately 36.23% in CRCT.

Upon completion, CapitaLand expects to receive $541.7m in proceeds and realise an estimated gain of $35.6m. The agreed value represents a 2.9% premium to CapitaLand’s valuation in December 2019.

ACBPF 4 will cease after CapitaLand fully divests all its assets.

Following the deal’s completion, CapitaLand will then enter into a 49:51 joint venture with CRCT on Ascendas Xinsu Portfolio at an agreed property value of $460.6m (more than RMB2.27b) on a 100% basis, in view of the site’s redevelopment potential.

Located in the Suzhou Industrial Park, the Ascendas Xinsu Portfolio comprises six locations with 61 buildings, including business parks and industrial portion. The portfolio has a total gross floor area of 373,334 square metres, according to CapitaLand.