Capitaland has entered into a share
purchase deed for the sale of its indirect wholly owned subsidiary Hua Lei
Holdings, which indirectly owns 100 per cent of Capital Tower Beijing.
CapitaLand said the consideration of
US$352 million takes into account the assignment of a shareholder's loan of
US$166 million and values Capital Tower Beijing at US$488 million.
CapitaLand said it will obtain net cash
flow of about $498 million and expects to recognise a gain of $163
million. It said Capital Tower Beijing had been intended as a
core long-term asset and the divestment following an unsolicited offer will
allow it to redeploy the capital to undertake more developments in China.
Capital Tower Beijing was completed in
2006. CapitaLand said it received unsolicited offers from
'several prospective investors' but would only say that the buyer is a
Fortune 500 company that hopes to set up its headquarters in Beijing.
It is understood that CapitaLand has its
Beijing office in Capital Tower Beijing and has no plans to move.
CapitaLand president and CEO Liew Mun
Leong said: 'This transaction fully demonstrates CapitaLand's skill-sets and
expertise in adding value to real estate projects and its ability to unlock
value for shareholders despite current volatile financial markets.'
CapitaLand said Capital Tower Beijing had
been intended as a core long-term asset, but that divestment will allow it
to redeploy the capital to undertake more developments in China.
- 2008 September 4 BUSINESS