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CapitaLand subsidiary buys 17% stake in Ning Xin from HPL unit
CAPITALAND'S indirect wholly owned subsidiary, Hua Sheng Holdings, has acquired a 17 per cent stake in Shanghai Ning Xin Real Estate Development Co from HPL Properties (North Asia) for $18 million. HPL Properties is an indirect wholly owned subsidiary of Hotel Properties (HPL).
Hua Sheng has an existing 68 per cent interest in Ning Xin, while CapitaLand China Residential Fund - a fund company in which CapitaLand has a 33.61 per cent interest - has a 15 per cent beneficial interest in Ning Xin. As a result of the acquisition, CapitaLand's interest in Ning Xin has increased from 73.04 per cent to 90.04 per cent.
Meanwhile, the sale nets HPL Group a profit of about $3.9 million. Following the sale, Ning Xin ceased to be an associated company of HPL. Ning Xin, a company incorporated in China, is the owner and developer of a residential project, Oasis Riviera, a 1,964-unit development in Shanghai. Oasis Riviera 'has been completed and substantially sold', HPL said. The cash consideration of $18 million took into account, among other things, the net tangible assets of Ning Xin, which stood at 375 million yuan as at April 30, 2009. The acquisition is not expected to have any material impact on the net tangible assets or earnings per share of the group for the financial year ending Dec 31, 2009, said CapitaLand.
FCT MTN issues $75m 4.8% fixed-rate notes due 2012
FRASERS Centrepoint Asset Management, the manager of Frasers Centrepoint Trust (FCT), announced that FCT MTN has issued $75 million 4.8 per cent fixed-rate notes due 2012. The notes are issued under the $500 million multi-currency medium-term note programme established on May 7, 2009.
FCT MTN will lend the proceeds from the issue to the FCT Trustee, HSBC Institutional Trust Services. The FCT Trustee will use the proceeds to refinance existing short-term borrowings of FCT and to finance general working capital.
It is expected that immediately upon such refinancing, at least 97 per cent of FCT's total borrowings will bear fixed interest rates and have maturity dates of no earlier than July 2011. The notes have been assigned a rating of 'BBB' by S&P's Rating Services, and will mature on June 18, 2012, and bear a fixed interest rate of 4.8 per cent per annum.
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