CapitaLand ups stake in Raffles City Shenzhen by 14.7%

Singapore property developer CapitaLand has increased its stake in Raffles City Shenzhen site by 14.7 per cent for S$99.3 million.

The move is part of the firm’s move to strengthen its presence in China, a stock exchange filing said.

The deal was completed via a wholly-owned subsidiary, CapitaLand LF (Cayman) Holdings.

The shares were purchased from CapitaLand AIF Limited and Gainfield Holdings, which each held 25 per cent and 6.25 per cent stake in Keisha Limited – a major stake holder in Raffles City Shenzhen site.

The acquisition effectively makes Keisha an indirect wholly-owned subsidiary of CapitaLand, which now controls 73 per cent stake in the property, up from 58.3 per cent previously.

The property consists of a Grade A office tower, a shopping mall, and a serviced residence component, and is located in the commercial area of Shenzhen City’s Nanshan District.

CapitaLand said the net tangible assets of the Acquired Interests are approximately S$43.9 million.

It added that the acquisition is not expected to have any material impact on its net tangible assets or earnings per share for the financial year ending December.

Source : Channel NewsAsia – 12 Aug 2011

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