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Swire Properties closes HK$6.53B sale of investment property in Hong Kong

Swire Properties Ltd. completed the sale of its investment property at Kowloon Bay, Hong Kong, for an approximate sum of HK$6.53 billion to Lucky Melody Ltd.

The New Kowloon Inland Lot No. 6312 plot and the building sitting on the site were divested through the sale of a 100% interest in Swire Pacific subsidiary Star Wing International Ltd.

The consideration Lucky Melody paid covered the entire issued share capital of the target company and the latter's loan obtained from Swire Properties.

With the completion of the sale, Star Wing is no longer a unit of Swire Properties and Swire Pacific Ltd., according to a release.

As per the sale and purchase contract, signed Oct. 28, 2016, a 25-story grade A commercial building is to be built on the land plot. The development is expected to include a three-level basement car park.

Swire Properties expected to register a gain of approximately HK$1.17 billion from the disposal, according to an October 2016 announcement. Additionally, an attributable gain worth roughly HK$959 million was projected for Swire Pacific, owing to its 82% stake in Swire Properties.

Swire Properties will use proceeds from the sale for general working capital purposes.