SINGAPORE - CapitaLand has entered into an agreement to sell its entire 24.09 per cent stake in Hong Kong-listed Central China Real Estate (CCRE) to CCRE's existing shareholder, Joy Bright Investments.

At a price tag of HK$2.83 billion (S$496 million), this works out to HK$4.30 per share. CCRE last traded at HK$3.45 per share on June 28.

The divestment is targeted for completion in the third quarter of this year.

Lucas Loh, president (China) for CapitaLand Group, said: "As part of our proactive portfolio management, we regularly review our investments and evaluate opportunities that will enhance returns and complement the group's strategy. CapitaLand's stake in CCRE has generated stable returns over the years. In view that CCRE operates primarily in Henan province, outside of CapitaLand's core city clusters, the divestment would allow us to re-allocate capital to other opportunities in our core businesses."

He added: "China is an important core market for CapitaLand and we continue to hold a long-term view of our business in the country. Upon completing the acquisition of Ascendas-Singbridge business, CapitaLand's enlarged portfolio in China will be organised along three business lines - residential and urban development; retail and commercial; and business parks. We will leverage our end-to-end value chain offerings, ranging from investment and fund management to development and operations, to grow CapitaLand's scale in our core city clusters."

CapitaLand shares closed at $3.65 on Monday, up 12 cents.