Li Ka-shing companies sell Shanghai development for $2.95 billion

The deal by the two companies - Cheung Kong Property Holdings (1113.HK) and Li Ka Shing (Overseas) Foundation - both owned by Li Ka-shing, marks another asset sale in China by the tycoon, who has also been increasing the pace of overseas acquisitions - particularly in infrastructure, telecoms and retail businesses in Europe. (here)

Cheung Kong said on Wednesday it expected to record an unaudited gain of around HK$6.22 billion ($802.07 million) from the sale of the Shanghai commercial development Century Link.

The companies will provide financing of around 7 billion yuan to the buyer, Cheung Kong said.

It said the buyer - called Mapleleaf Century Limited, is majority owned by the insurer, with the rest indirectly held by two funds managed by ARA Asset Management (ARAM.SI), which is backed by Li Ka-shing.

The vehicle will also be managed by ARA, Hong Kong's second-largest property developer by market value.

"The board considers that the disposal enables the company to realize its investment in the target Group," Cheung Kong said in a statement.

The deal is expected to complete in or about 2017/2018.

($1 = 6.7682 Chinese yuan renminbi)

($1 = 7.7549 Hong Kong dollars)

(Reporting by Clare Jim; Editing by Jane Merriman)