Weiyuantang (00897) and Hongan Group (01222) issued a joint announcement to sell on March 1, 2024...
According to Zhitong Finance App, Weiyuantang (00897) and Hongan Group (01222) issued a joint announcement. On March 1, 2024, the seller Guangjun Development Co., Ltd. (an indirect wholly-owned subsidiary of Wai Yuantang) entered into an interim agreement with the buyer Li Weicheng and the property agent Jinghua Property Agency Co., Ltd. The seller agreed to sell, and the buyer agreed to buy such properties at a cost of HK$41 million.
According to reports, these properties include a commercial unit located in Shop C on the ground floor of Lee Wah Building, 738-740A Nathan Road, Kowloon, Hong Kong, China, and a warehouse located in Room C of the loft of Lee Wah Building, 738-740A Nathan Road, Kowloon, Hong Kong, China. The total useful area is about 431 square feet, plus a patio with a total useful area of about 77 square feet. On the date of this joint announcement, Wai Yuen Tong Group will use such properties as its own retail stores and retail store warehouses. The lease will expire on January 27, 2026.
According to the announcement, these properties were purchased by the seller in 2008 and are currently used by Wai Yuen Tong Group to operate its own stores. After considering the current retail property market conditions and the quality of such properties (including the location, age, surrounding facilities and redevelopment potential of such properties), both Hongan Board of Directors and Wai Yuen Tong Board of Directors agree that the sale not only brings an opportunity for Hongan Group and Wai Yuantang Group to realize the value of such properties in due course, and that the proceeds from the sale are used to repay bank loans to reduce debts. At the same time, leasing back such properties allows Wai Yuantang Group to continue retail operations.