news

CapitaLand in acquisition, divestment of Shanghai office buildings valued at S$851 mil

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.

Looking for properties to buy or rent? With >150,000 exclusive listings, including undervalued properties, from vetted Pro Agents, you can now easily find the right property on Malaysia's leading property portal EdgeProp! You can also get free past transacted data and use our proprietary Edge Reference Price tool, to make an informed purchase.
SHARE
RELATED POSTS
  1. Coastal living at Prince Bay Taiziwan, China
  2. Evergrande to raise US$5b from stake selling its property unit
  3. Report: 1,822 MM2H participants left the country for good between 2015 and 2019