SINGAPORE (June 1): CapitaLand says it has agreed to buy Guozheng Center, a newly completed office development in Yangpu District, Shanghai, China, for RMB2.64 billion (S$535 million or RM1.66 billion).
Based on total gross floor area (GFA) of 80,701 sqm, the price translates to an investment of RMB32,713 (S$6,628) per sqm.
CapitaLand will also be divesting Innov Tower, an eight-year-old office building located in Shanghai's Xuhui District, to an unrelated party at RMB1.56 billion (S$316 million).
This works out to RMB38,500 (S$7,800) per sqm based on the total GFA of 40,445 sqm.
The divestment is expected to generate net profits of about S$85 million.
Lim Ming Yan, President and Group CEO of CapitaLand, says, “The divestment of Innov Tower allows us to unlock and realise the value of a stabilised asset at an optimal stage of its life cycle, while the acquisition of Guozheng Center allows us to immediately redeploy the capital to another quality income-generating asset.”
Shares of CapitaLand last traded at S$3.56. — theedgemarkets.com.sg
For more stories, download TheEdgeProperty.com pullout here for free.
TOP PICKS BY EDGEPROP
Isle of Kamares, Setia Eco Glades
Cyberjaya, Selangor
Liu Li Garden, Setia Eco Glades
Cyberjaya, Selangor
Lepironia Gardens, Setia Eco Glades
Cyberjaya, Selangor
Lepironia Gardens, Setia Eco Glades
Cyberjaya, Selangor
Lepironia Gardens, Setia Eco Glades
Cyberjaya, Selangor
Setia Marina 2, Setia Eco Glades
Cyberjaya, Selangor
Setia Marina 2, Setia Eco Glades
Cyberjaya, Selangor
Charms of Nusantara, Setia Eco Glades
Cyberjaya, Selangor
Liu Li Garden, Setia Eco Glades
Cyberjaya, Selangor
Lepironia Gardens, Setia Eco Glades
Cyberjaya, Selangor
Isle of Botanica, Setia Eco Glades
Cyberjaya, Selangor
Setia Marina 3, Setia Eco Glades
Cyberjaya, Selangor
Charms of Nusantara, Setia Eco Glades
Cyberjaya, Selangor
Residensi Aman Bukit Jalil
Bukit Jalil, Kuala Lumpur
Long Branch Residences
Kota Kemuning, Selangor
SS 21, Damansara Utama
Petaling Jaya, Selangor