The divestment takes into account the agreed property value of about $621m.
As part of its capital management strategy, CapitaLand is divesting its interest in companies that hold Innov Center in Shanghai to its maiden discretionary real estate equity fund, CapitaLand Asia Partners I (CAP I), an announcement revealed.
Shanghai Innov Center was acquired in 2017 to serve as the seed asset to kickstart the firm’s discretionary fund business.
The divestment takes into account the agreed property value of about $621m and aims to meet the firm’s goal of meeting its annual divestment target of at least $3b.
The proposed injection of Innov Center into CAP I is expected to be completed in Q3. Other pipeline assets for CAP I include Pufa Tower, an office development in Shanghai which . CapitaLand acquired for $546.3m last January.
“Upon the successful first closing of CAP I, the property will now be transferred to the fund from CapitaLand’s balance sheet,” Lee Chee Koon, president and group CEO of CapitaLand Group said in a statement.
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