Rykadan Capital (02288) announced that on July 23, 2024, the RH buyer, Worth Celestial Limited (a company's wholly-owned subsidiary), and the RH seller entered into an RH Property Company Agreement. The RH seller has conditionally agreed to sell RH's sale shares, and RH Seller 1 has conditionally agreed to transfer RH's sale loans. The RH buyer has conditionally agreed to purchase RH's sale shares and accept the transfer of RH's sale loans, without any property burdens, at an initial price of HK$56.0842 million, which may be adjusted in accordance with the terms of the RH Property Company Agreement (if any).
RH Property Company is a limited company registered under the law of the British Virgin Islands, mainly engaged in investment holding, and its main asset is RH Property.
RH Property is located at No. 53 Songbai Path, Red Hill Peninsula, 18 Baipen Shan Road, Hong Kong. RH Property consists of four floors and a roof, and has a garage on the ground floor. It is a residence property with a total built-up area of approximately 241 square meters. RH Property is currently occupied by the RH seller and the vacant possession will be delivered to the RH buyer upon the completion of the RH. RH Property was indirectly acquired by the RH seller through its investment tool (ie, RH Property Company) The acquisition price was approximately HK$56 million in 2012. RH Property currently and is expected to continue to hold a mortgage to secure its existing RH bank loan after the completion of RH. The existing RH bank loan was obtained by the RH Property Company in 2012 and provided funds for the acquisition of RH Property.
The Board of Directors believes that the acquisition provides the group with an opportunity to expand its investment portfolio. Although the prices of luxury residential properties in Hong Kong have fallen in the past two years due to factors such as high interest rates and uncertain external markets, the group is still optimistic about the prospects of the Hong Kong luxury residential property market.