Zhixin Finance APP News, Lai Sun Int'l (00191) and Lai Sun Dev (00488) jointly announced that on July 2, 2024, the seller and the buyer entered into an agreement, and the seller agreed to sell its statutory and beneficial rights and interests in the property.

Register the entire or whole plot of land of general's residence No. 95 (land) and the 1.0326 million equivalent undivided part of the development project (development project) currently called 'Blue Pond Proud', together with exclusive rights and privileges to hold, use, occupy and enjoy all the commercial floors of the development project, as well as the exclusive rights and privileges to hold, use, occupy and enjoy all the public parking spaces of the development project, together with the total of 22.64 million undivided parts thereof, as well as all the 2.599 million equivalent undivided parts of the land and the development project, on the registration of the Land Registry.

As of the date of this joint announcement, Diamond Path Limited, a joint venture company in which Lai Sun Dev Group has a 50% interest and a third party has a 50% interest, holds all the issued shares of the seller. As of the date of this joint announcement, the seller is the sole statutory and beneficial owner of such property, all of which are non-residential properties.

Under the terms of the sale, the property must be sold to the buyer on an 'as-is' basis, subject to and benefitting from existing leases, tenancies and licences. The seller will guarantee to the buyer that, for the period of two years from August 1, 2024 to July 31, 2026, the annual net rental income generated by such property (as agreed by the seller and the buyer) shall not be less than HKD 33 million; otherwise, the seller shall pay the difference to the buyer.

The consideration for the sale is HKD 540 million, which was determined fairly and through commercial negotiation on normal commercial terms by the buyer and the seller after considering all the documents submitted by the seller in the tender process.

The sale is expected to be completed on or before August 5, 2024. It is expected that Lai Sun Garment Group and Lai Sun Dev Group will both confirm in their respective consolidated income statements the estimated loss of approximately HKD 307 million resulting from the sale reflected in the excess and shortfall of profits and losses of the joint venture company attributable to them. The estimated loss is calculated based on the difference between our 50% equity interest in the seller and the book value of the property as of July 31, 2023. The actual amount of the loss related to Lai Sun Garment Group and Lai Sun Dev Group will be subject to final audit and adjustment (if any).

The directors of Lai Sun Garment believe that the sale is in the overall interests of Lai Sun Garment and its shareholders, and that its terms and consideration are fair and reasonable. The directors of Lai Sun Dev believe that the sale is in the overall interests of Lai Sun Dev and its shareholders, and that its terms and consideration are fair and reasonable.