Gelonghui, May 3, 丨 WANG ON GROUP (01222.HK) and Wai Yuen Tong (00897.HK) announced that on May 3, 2024, the seller Yuxun Investment Co., Ltd. (Wai Yuen Tong indirect wholly-owned subsidiary) entered into an interim agreement with the buyer (Insurance Company Limited) and the property agent (as a property agent). Based on this, the seller agreed to sell the property, and the buyer agreed to buy the property at a cost of HK$33 million.” “This property” refers to Shop B, G/F, Kwong Sing Building, 23-33 Shui Wo Street, Kowloon, Hong Kong.
The property was purchased by the seller in 2005 and is currently leased to franchisees to operate stores under the “Wai Yuen Tong” brand. After considering the current retail property market conditions and the quality of the property (including the location, age, surrounding facilities and redevelopment potential of the property), the board of directors of Hongan and Wai Yuen Tong both agreed that the sale not only brought a good opportunity for Hongan Group and Wai Yuen Tong Group to realize the value of the property at the right time, and use the proceeds from the sale to reduce debt. At the same time, the new lease agreement allows Wai Yuen Tong Group to continue retail operations at a lower monthly rent.