CapitaLand unit acquires 40% stake in Surbana

Property developer CapitaLand says its wholly-owned subsidiary, CL Pinnacle, has acquired a 40 percent stake in Temasek Holdings’ unit Surbana for S$360 million.

CapitaLand says the purchase will complement and accelerate the growth of its value housing business initiative by leveraging on Surbana’s expertise, particularly in large scale mass market residential developments.

Last year, CapitaLand launched a new business unit, CapitaValue Homes, to grow its residential business in the value housing sector in Asia, with a focus on China and Vietnam.

Surbana will also add significant technical expertise through its consultancy business to CapitaLand Group.

Surbana provides full-service building consultancy solutions across the value chain, from master planning to architectural, engineering, project management and other ancillary services through its consultancy business.

It currently manages four township developments located in Shenyang, Xi’an, Chengdu and Wuxi in China, with a gross floor area of approximately 6 million square metres.

The transaction will be funded from CapitaLand’s internal source of funds and available cash and is not expected to have an impact on the firm’s earnings in the current financial year.Source : Channel NewsAsia – 15 Apr 2011

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