CapitaLand is going to inject four of its Raffles City-branded integrated developments into its Raffles City China fund.
The US$1 billion real estate private equity fund will acquire CapitaLand’s 55.9 per cent stake in Raffles City Shanghai.
It will also take over 100 per cent of Raffles City Beijing, Raffles City Chengdu and Raffles City Hangzhou.
CapitaLand is expected to receive a total consideration of approximately US$841 million for the four developments.
Net of its 50 per cent stake in the fund, CapitaLand will obtain an eventual net cash flow of approximately US$420 million.
The fund is CapitaLand’s first integrated development private equity fund in China and its largest to date.
Source : Channel NewsAsia – 22 Aug 2008