Wheelock and Co. Ltd.'s Fabulous New Ltd. subsidiary is buying a residential site under development in the Kai Tak area of Kowloon, Hong Kong, through a nearly HK$6.36 billion agreement with Omnilink Assets Ltd., a subsidiary of HNA Group Co. Ltd.'s Hong Kong International Construction Investment Management Group Co. Ltd.
As part of the deal, Fabulous New will buy from Omnilink one ordinary share in Onwards Asia Ltd., the indirect sole owner of the development. Aside from the single share, which represents the entire issued share capital of the target, the buyer will also pay all of the target's debt owed to the seller.
The 7,318-square-meter residential site was awarded to Onwards Asia's Top Genius Holdings Ltd. subsidiary in January 2017 for HK$5.53 billion. The property is one of the Chinese conglomerate's last two sites in Kai Tak, following its HK$16 billion sale in February of the first two to Henderson Land Development Co. Ltd.
Wheelock said it will use internal resources and bank borrowings to settle the purchase. Completion of the deal is expected on or before May 16, or no later than June 30, depending on the satisfaction of necessary conditions.
Wheelock said the deal presents an opportunity to expand its presence in Kai Tak, wherein it owns the Oasis Kai Tak residential project.
Kai Tak, the former location of Hong Kong's international airport, is an urban development area in Hong Kong that is also home to projects undertaken by developers such as a partnership between KWG Property Holding Ltd. and Longfor Properties Co. Ltd.
