GuocoLand unit sells Shanghai-based hotel for $290.7m

The property developer is expected to record a net gain of $90.6m.

GuocoLand’s China unit will sell Guoman Hotel in Shanghai and 256 of its underground car park spaces for $290.7m to Shanghai Zhengjiu Industrial Co., according to an announcement.

The deal will be paid in cash for four installments, with the first installment amounting to $58m, which will be paid upon the execution of the agreement. The property developer is expected to record a net gain of $90.6m with the transaction.

It may also sell up to another 44 underground car park spaces at around $32,000 per space as part of the deal.

The real estate has a net book value of about $102.6m as of 31 March.

Net proceeds from the transaction will be used for GuocoLand's general working capital and debt repays.