Core Viewpoint - The company has agreed to sell a property for HKD 48.367 million, which will be leased back to continue its shared workspace operations, addressing the challenges in the Hong Kong commercial property market [1][2]. Group 1: Transaction Details - The seller, Yongda Development, a wholly-owned subsidiary of the company, has entered into an agreement with the buyer, Wei Yong, to sell the property located at Silver Fortune Plaza, 20th floor, 1 Wellington Street, Hong Kong [1]. - The total area of the property is approximately 4,397 square feet, currently used as a shared workspace by the company's indirect subsidiary [1]. - The buyer will lease the property back to a designated tenant at a monthly rent of HKD 185,000, excluding property tax, rates, and management and air conditioning fees, for an initial term of two years with an option to renew for an additional two years [1]. Group 2: Strategic Rationale - The board has been evaluating the commercial environment in Hong Kong, the development of the commercial property market, and the company's financial condition [2]. - The sale is seen as a way to liquidate the investment in the property, addressing the downward trend and uncertainties in the Hong Kong commercial property market, while improving the company's debt, liquidity, financing costs, and overall financial pressure [2]. - The sale and leaseback arrangement allows the company to continue its operations in the property without the need to relocate or incur additional costs to restore the property at the end of the lease [2].
星星集团附属拟4836.7万港元出售香港物业