GTC Real Estate China Ltd., a wholly-owned subsidiary of Kardan NV (TASE: KRNV;AEX:KARD) has sold its 50% stake in the Hangzhou International Financial Center for €31 million. The Hangzhou International Financial Center is a mixed-use office and luxury apartment project that is in the design stage.
GTC China acquired its stake in the project company, Hangzhou International Financial Center Co. Ltd., in 2008. Kardan expects to close the sale during the first quarter.
GTC China sold the project in order to gradually focus more on shopping mall development, as it expects a significant increase in consumption in China.
GTC China expects to report a capital gain of €7 million in sale, net of withholding tax on the transfer of proceeds out of China, which for Kardan translates into an approximate gain of €5 million.
Kardan's share price fell 3.5% in morning trading in Amsterdam to €4.31, giving a market cap of €480 million, and fell 1.5% by midday on the TASE to NIS 21.44.
Published by Globes [online], Israel business news - www.globes-online.com - on January 27, 2011
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