Group now left with another two S’pore industrial assets in its portfolio
CAPITALAND has agreed to sell two of its industrial properties in Kallang for a total of $68 million to construction and industrial property development group Chiu Teng.
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| Likely gain: CapitaLand expects to book a gain of about $19.2 million on the completion of sale of Kallang Avenue Industrial Centre (above) and Kallang Bahru Complex (next) |
The move, which is part of a strategy to divest non-core assets, leaves CapitaLand with just two industrial properties – Corporation Place in Jurong, in which it has a 75 per cent stake, and Technopark@Chai Chee, which it fully owns.
BT reported in November last year that the property giant was believed to be looking to sell its four industrial properties in Singapore either individually or as a portfolio.
Technopark had a book value of $210 million at end-2008. Corporation Place was understood to be worth about $80 million at end-June 2009.
A CapitaLand spokeswoman said: ‘We will continue to look into the possibility of divesting Corporation Place and Technopark at the appropriate time, for the right price and when target returns are met. However, as of now, we have no definitive plans for their sale.’
CapitaLand said in a news release yesterday that it expects to book a gain of about $19.2 million on the completion of sale of the two leasehold Kallang properties, which is expected to be next month.
Had the sale been effected on Jan 1, 2009, CapitaLand’s earnings per share for the nine months ended Sept 30 would have increased almost 10 per cent, from 4.1 to 4.5 cents. Continue reading
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