Swire Properties Ltd. signed a deal to divest the CityPlaza Three and CityPlaza Four office properties in Hong Kong's Quarry Bay neighborhood for HK$15.00 billion in cash, subject to adjustments, to investment holding company Henglilong Investments Ltd.
Under the deal, Henglilong will purchase Swire's 100% interest in Thrive Power Ltd., a subsidiary that owns the two buildings, from Improve Fame Ltd., another Swire subsidiary. Completion of the deal is scheduled for April 11, 2019, subject to certain conditions. Thrive will cease to be a subsidiary of Swire following the closing of the deal.
CityPlaza Three spans 20,996 square meters and CityPlaza Four spans 50,500 square meters. Both properties are fully leased.
A potential sales deal for the assets was earlier reported by the Hong Kong Economic Times, which said the potential buyer plans to resell some floors of the buildings after completing the purchase.
Swire plans to use the sales proceeds for general working capital purposes.