Gelonghui, April 12 | Xianshi (00244.HK) announced that on April 12, 2024, the seller Weijing Limited (an indirect wholly-owned subsidiary of the company), the buyer Honest Standard Limited and the agent entered into an interim agreement. According to this, the seller agreed to sell and the buyer agreed to buy the property at a cost of HK$210 million.” “This property” refers to rooms A to H on the 12th floor of Junsheng Centre, 23 Man Lok Street, Kowloon, Hong Kong, L8 parking spaces on the 1st floor and L26 parking spaces on the 2nd floor.
According to the provisional agreement, the seller may choose to sell and lease back the property to the buyer for a period of 6 months from the day after completion, for a monthly rent of HK$400,000 (including all rates, ground rent and management fees), but may terminate the sale and leaseback early in accordance with the terms and conditions of the lease agreement between the seller and the buyer after completion.
The directors have been evaluating the Hong Kong real estate market and reviewing the use of the property from time to time. After considering (i) the property is mainly used as a warehouse for the Group's inventory; (ii) the current market value of the property; (iii) the overall economic situation of Hong Kong; and (iv) the Group's financial performance, the directors believe that the sale was a good opportunity for the Company to achieve the value of the property at a favorable price, and that the proceeds from the sale would improve the Group's financial position and increase the Group's general working capital. The Group intends to buy or rent another property as a warehouse upon completion. The sale-leaseback arrangement will allow the Group to continue to use the property as a warehouse for inventory after completion until a suitable property is found.