Property investment firm Hongkong Land has disposed of a 23 per cent stake in water supply and treatment firm China Water for US$35.2 million, as it seeks to gradually trim holdings in its infrastructure portfolio. The company said it and Hong Lim Investments - a wholly owned subsidiary of the Singapore government's investment vehicle, Temasek Holdings - have sold a combined 46 per cent stake to Malaysian conglomerate Sime Darby and a company associated with the Kadoorie family for US$70.4 million. Hongkong Land received US$35.2 million for its 23 per cent stake, leaving it with a 2.4 per cent stake. Temasek will keep a 2.8 per cent holding. The transaction's valuation is similar to that of Thames Water's entry price into China Water in June last year, when it invested US$70 million of new equity for a 48 per cent stake. China Water engages in projects in Liaoning and Shandong provinces. Hongkong Land and Temasek are two of China Water's three founding shareholders. Each of the three spent US$10 million for stakes of 33.3 per cent in 1996, and subsequently put in a further $10 million to boost their stakes to 40 per cent each.