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(Corrects Stockland's current market cap in 2nd graf, and the currency in 3rd graf)
By Byron Kaye
SYDNEY, March 19 (Reuters) - Australia's Stockland Corporation Ltd
A full takeover of Australand would cement Stockland's position as one of Australia's largest property companies, adding A$2.2 billion to its current A$8.9 billion market capitalisation.
Stockland confirmed the acquisition as Singapore's CapitaLand Ltd
Australand has been seen as a takeover target since CapitaLand said it wanted to sell what was a 59 percent stake in early 2013. Stockland has been seen as a likely buyer of some or all of the business.
"They'll probably go for the whole thing," said one property analyst who asked not to be named because he was not authorised to comment publicly.
Stockland said it bought the stake for an average of A$3.78 per stapled security, amounting to about A$435 million.
"Over time this holding will enable us to explore strategic opportunities with Australand," Stockland CEO and Managing Director Mark Steinert said in a statement.
Asked if this was a reference to a further acquisition of Australand stock, a Stockland spokesman declined to comment.
CapitaLand said it sold the stake to simplify its structure and redeploy the funds in Singapore and China.
Last year CapitaLand cut its stake in Australand to 39.1 percent from 59.1 percent at a loss to pursue new opportunities, even though an earlier strategic review had concluded Australand was a key investment.
Australand securities were placed on a trading halt on Wednesday. Stockland shares were 2.3 percent lower at A$3.76 in a flat overall market. ($1 = 1.0950 Australian Dollars)
(Additional reporting by Lincoln Feast; Editing by Richard Pullin and Stephen Coates)
((Lincoln.Feast@thomsonreuters.com)(+61 2 9373 1826)(Reuters Messaging: lincoln.feast.thomsonreuters.com@reuters.net))
Keywords: AUSTRALAND PROP CAPITALAND/SALE (UPDATE 1,CORRECTE