CapitaLand Limited announced on Monday (August 3) that its interest in Guangzhou Kai Ke Xin Mao Real Estate (GKK) has decreased to 45%.

On Monday (August 3), CapitaLand announced that CLC Investment Seven (CIS) and GKK’s other shareholders had divested 40% equity interest to a purchaser unrelated to CapitaLand for a cash consideration of RMB395.7 million ($78.6 million).

GKK is currently held through CIS, which is CapitaLand’s wholly-owned subsidiary.

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

The adjusted net asset value (NAV) of GKK stands at some RMB989.1 million.

Following the completion of the transaction, GKK is now and GKK has ceased to be a subsidiary of CapitaLand, and has now become an associated company of the group.

CapitaLand says the transaction is not expected to have any material impact on the net tangible assets (NTA) or earnings per share (EPS) of the group for the financial year ending December 31.

Shares in CapitaLand closed 5 cents lower, or 1.8% down, at $2.71.