Core Viewpoint - The company, Star Group (01560), has entered into preliminary sale agreements to sell properties for a total consideration of HKD 58 million, which is expected to improve its financial situation while allowing continued operation of its rental business through a sale-and-leaseback arrangement [1][2]. Group 1: Sale Agreement Details - The seller, 1Wise City Holdings Limited and Dying Limited, has agreed to sell properties located at 16-18 Yau Wa Street, Hong Kong, to the buyer, New Way International Limited, for HKD 58 million [1]. - The buyer will lease the properties back to a wholly-owned subsidiary of the company at a monthly rent of HKD 250,000, excluding property tax, rates, and management and air-conditioning fees [1]. - The initial lease term is set for two years from the completion date, with a deposit of two months' rent and one month’s rent prepaid [1]. Group 2: Financial Implications - The board believes that the sale will enhance the group's debt, liquidity, financing costs, and overall financial condition by monetizing its investment in the properties [2]. - The monthly rent under the sale-and-leaseback arrangement is approximately equivalent to the current monthly interest payments, with an average bank interest rate of about 5% [2]. - Proceeds from the sale will be used to repay outstanding loan balances, thereby reducing monthly financial burdens and improving cash flow while maintaining operational use of the properties [2].

Group 1 - The core point of the article is that Star Group (01560.HK) has entered into preliminary sale agreements to sell two residential properties in Hong Kong for a total consideration of HKD 58 million [1] - The seller, Wise City Holdings Limited, and the buyer, New Way International Limited, have agreed on the sale of properties located at 16 Yau Wa Street and 18 Yau Wa Street [1] - The buyer will lease the properties to a designated tenant, City Service Apartment Limited, for a monthly rent of HKD 250,000, excluding property tax, rates, and management and air conditioning fees [1] Group 2 - The initial lease term is set for two years starting from the completion date, with a requirement for a two-month rental deposit and one month’s rent paid in advance [1]