SINGAPORE (Aug 29): Property group CapitaLand is divesting Somerset Jiefangbei Chongqing in China.

The cash consideration, subject to post-completion adjustments, is RMB99.2 million ($19.6 million), based on an agreed property value of RMB200 million.

The entire property is 100% held through Citadines Ming Zhu Property (CMCQ), a China-incorporated holding company.

The sale and purchase agreement for the 100% stake in CMCQ was signed between buyer Zhongshen Tianjin Commercial Management and seller Mingzhu Investments, a wholly owned subsidiary of CapitaLand.

According to CapitaLand, the divestment is in line with the group’s approach towards disciplined portfolio optimisation through capital recycling.

Following the divestment, CMCQ will cease to be a wholly-owned subsidiary of CapitaLand.

CapitaLand says the divestment is not expected to have any material impact on the net tangible assets or earnings per share of the group for the financial year ended December.

Shares in CapitaLand closed 7 cents higher at $3.46 on Thursday before the results announcement.

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