CapitaLand Ltd. (CAPL), Southeast Asia’s biggest developer, raised A$426.4 million ($398 million) by selling a third of its 59 percent stake in Australand Property Group (ALZ) at the bottom of its offer range.
CapitaLand sold 115.7 million shares, equal to about 20 percent of Australand’s outstanding securities, at A$3.685 each, the company said in a stock-exchange filing today. The developer had offered shares at A$3.685 to A$3.750 each, according to transaction terms seen yesterday by Bloomberg News. Australand shares fell 4 percent to A$3.60 at the close of Sydney trading.
The Singapore-based Capitaland will receive S$485.3 million ($389.2 million) from the sale, which it will “deploy towards new opportunities. The book-build process was underwritten by Citigroup Inc.
‘‘We are confident of the prospects of Australand as well as the real-estate sector in Australia,’’ CapitaLand Chief Executive Officer Lim Ming Yan said in a statement. ‘‘We are comfortable with our remaining interest in Australand and it will remain a key investment for us.’’
The Singapore developer this year carried out a review of its businesses, which it concluded in July with a decision to keep its stake in Sydney-based Australand. During the review, several parties expressed an interest in all or part of Australand’s business. The Australian developer said Nov. 19 that it expects impairments of about A$65 million in its commercial and residential-development businesses.
GPT Group (GPT), Australia’s third-biggest diversified property trust by market capitalization, in December offered to buy Australand’s commercial and development units. The company dropped its pursuit in May after failing to agree on a price.
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