Wing Tai Properties Ltd., through its WTP Investment (Hong Kong) Ltd. subsidiary, is selling the W Square commercial property at 314-324 Hennessy Road in Wanchai, Hong Kong, to Top Sincerity Ltd. for nearly HK$2.85 billion.
The proposed disposal of the roughly 128,600-square-foot property will be executed through WTP Investment's sale of all its shareholding in Allied Effort Ltd., which fully owns Winnion Ltd., the owner of the W Square asset.
Proceeds from the planned divestment, estimated to be approximately HK$2.82 billion, will be used by the company to finance the expansion of its business and for general working capital. Wing Tai Properties said in a filing that a gain of about HK$1.06 billion is also expected from the transaction.
Trading of Wing Tai Properties' shares was halted Jan. 31, pending the release of the divestment announcement. With the sale unveiled, the shares are expected to return to trading on the Hong Kong stock exchange Feb. 2 at 9 a.m. local time.
