Source : Straits Times - 4 Sep 2008
CapitaLand has sold Capital Tower Beijing in China for US$352 million (S$497.6 million) and expects to recognise a gain of $163 million from the deal.
The group said in a statement yesterday that it sold its indirect wholly owned subsidiary Hua Lei Holdings, which indirectly owns all of the office building.
The price comprises the consolidated net asset value of the group’s indirect wholly owned subsidiaries which own the property. It took into account the assignment of shareholders’ loan of about US$166 million, valuing Capital Tower Beijing at US$488 million.
CapitaLand bought the development of two 35-storey towers while it was still under construction in 2005. It turned the project into an international Grade A office development and sited its own Beijing office on the 33rd floor.
CapitaLand president and chief executive Liew Mun Leong said in a statement yesterday: ‘Since its completion in 2006, Capital Tower Beijing has become a well- known landmark…Because of this success, we have received unsolicited offers for the building from several prospective investors.’
Although the firm had wanted the building as one of its core long-term holdings, ‘the unsolicited offer…will allow us to redeploy capital to undertake more quality developments in China’, said Mr Lim Ming Yan, chief executive of CapitaLand China Holdings Group.
The buyer is a Fortune 500 company that aims to set up its corporate headquarters at the development, which has a gross floor area of 107,627 sq m. It is 83 per cent occupied.
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