CapitaLand unit trims stake in GKK for $78.6m

The group’s interest in the Chinese real estate developer fell to 45%.

CapitaLand’s wholly-owned subsidiary CLC Investment Seven (CIS) has divested an aggregate 40% equity interest in Guangzhou Kai Ke Xing Mao Real Estate Development (GKK) to an unrelated purchaser for $78.6m (RMB395.7m) through a series of transactions, a press release revealed.

GKK owns a mixed-use site located in Huangpu District, Guangzhou, China which is to be developed into an integrated development comprising office, retail, apartments, serviced residence and low-density strata office components. Through the transaction, CapitaLand stated that they unlocked capital for reinvestment and GKK has secured an additional capital partner for its project.

The adjusted net asset value (adjusted NAV) of GKK is $196.6m (RMB989.1m). The consideration was arrived at on a willing-buyer and willing-seller basis taking into account 40% of the adjusted NAV.

Following the completion of the transaction, CapitaLand’s interest in GKK fell to 45% and also ceased to be a subsidiary of CapitaLand, becoming an associated company of the firm.