Yu Shenfeng Holdings (02132) issued an announcement. On May 3, 2024, the buyer (Shi Cheng Construction Engineering Co., Ltd., an indirect wholly-owned subsidiary of the company) entered into a sales agreement with the seller (Qualification Co., Ltd.). The buyer agreed to buy at a cost and the seller agreed to sell the property at a cost. The cost is HK$6.11 million in cash and is expected to be disbursed from within the Group's internal resources. The cost is in line with the estimated market value of the property assessed by an independent property valuer.
According to reports, the property is located in Unit 07, 19th Floor, One Midtown, 11 Hoi Shing Road, Tsuen Wan, New Territories, Hong Kong. The saleable floor area is about 648 square feet. Once the acquisition is completed, the property will mainly be used as a storage room and office.
The announcement stated that the acquisition will ensure the Group's use of the property while improving the Group's operating cash flow in the long term by saving rent expenses. By acquiring the property, the Group can also enjoy potential capital appreciation in the future and mitigate the risk of future rent increases for the Group.