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. —

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