CapitaLand (CapLand) yesterday announced that the divestment of MenaraCitibank, an office building in Kuala Lumpur, had collapsed as the balancepurchase price had not been paid by IOI Corporation (IOI) on the completiondate. In August, IOI agreed to acquire Menara Citibank for a totalconsideration of S$251.6m and CapitaLand would have reaped a gain ofS$22.1m and cash inflow of S$75.5m for its 30% stake in the building.According to IOI, the decision was taken due to recent sudden adversedevelopments in the global economic environment. In our previous report,we already highlighted the challenging market conditions for assetmonetization and the collapse of this deal further substantiates our point.Deposit paid by IOI will be forfeited and CapLand will recognize a gain ofS$9.3m. Previously, we have not factored in any gain from the divestmentbut we are putting our HOLD recommendation under review in light of therecent decline in CapLand's share price.