News
CapitaLand units divest Somerset Lake Point for THB1,825 million
Singapore, 15 June 2004 - The Ascott Group, a subsidiary of CapitaLand, and IP Property Fund Asia Limited (IPPFAL), an associate of CapitaLand, have divested their respective interests in Somerset Lakepoint for THB1,825 million (about S$76.7 million). Somerset Lakepoint, a 350-unit serviced residence in Bangkok's Sukhumvit district, is owned by IP Thai Property Fund (IPTPF). All units in IPTPF have been sold to the Thailand Government Pension Fund. The sale completed today.
CapitaLand's effective 34.6% stake in the property fund is held through a 20% equity in IPPFAL which in turn holds 70% equity in IPTPF; and a 68.8% stake in Ascott which in turn holds 30% equity in IPTPF. CapitaLand's share of the gains would amount to about THB124 million (about S$5.2 million) from the transaction. Ascott will continue to manage the property.
Mr Liew Mun Leong, President & CEO of CapitaLand and Deputy Chairman of The Ascott Group, said, "This transaction is in line with CapitaLand's strategy to enhance its asset productivity by realising profits from its properties which have reached a certain steady state of income, whilst continuing to enjoy fee-based income, in this case through Ascott retaining the management of the property under the Somerset brand. We recently grew our presence in Thailand through a 40% stake in TCC Capital Land which will invest, develop and manage properties in the residential, office and retail sectors. Thailand will continue to be a key gateway city in the Group's operations to increase its overseas earnings."
About CapitaLand
CapitaLand is one of the largest listed property companies in Asia. Headquartered in Singapore, the multinational company's core businesses in property, hospitality, property services and real estate financial services are focused in gateway cities in Asia, Australia and Europe.
The company's hospitality businesses, in hotels and serviced residences, span more than 60 cities around the world. CapitaLand also leverages on its significant real estate asset base and market knowledge to develop fee-based products and services in Singapore and the region.
The listed subsidiaries and associates of CapitaLand Limited include Raffles Holdings, The Ascott Group, Australand Property Group (which is listed both in Singapore and Australia), CapitaMall Trust and CapitaCommercial Trust.
Visit www.capitaland.com for more details.
About IP Property Fund Asia
IP Property Fund Asia is an associated company of CapitaLand which is co-managed and co-sponsored by CapitaLand and ING Real Estate. IP Property Fund Asia's investment is focused on real estate in Hong Kong, Singapore, Thailand and Malaysia.