China Uptown (02330.HK) announced on September 26, 2024 that the seller (a wholly-owned subsidiary of the company) and the buyer entered into a temporary agreement on this date. Accordingly, the buyer has conditionally agreed to purchase and the seller has conditionally agreed to sell the property for HKD 32.5 million.
The property refers to Unit 1501, 15th Floor, Tower 1, Sunning Plaza, 30 Guangdong Road, Tsim Sha Tsui, Kowloon, Hong Kong.
The property serves as the group's main office in Hong Kong, mortgaged to a financial company. The directors believe that the outlook for the Hong Kong office market is deteriorating. The group plans to sell the property and repay the outstanding mortgage loan. Upon completion, the group will no longer use the property as its main office in Hong Kong and will lease another office location in Hong Kong. The directors believe that the sale will (i) reduce the capital depreciation risk of the group's property; (ii) repay the outstanding mortgage amount and alleviate the group's interest burden; and (iii) redistribute the net proceeds from the sale to the group's general operating funds.
