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Fortune REIT to sell Hong Kong property for HK$2B

Fortune REIT agreed to sell the Provident Square property in Hong Kong to Farsight Investment Ltd. for approximately HK$2.00 billion.

Hong Kong billionaire Li Ka-Shing's CK Asset Holdings Ltd. owns a 27.6% stake in Fortune REIT.

The property has a gross rentable area of roughly 180,238 square feet and comprises the shopping center and the sub-basement of the entire Provident Centre residential and commercial development at 21-53 Wharf Rd. in North Point.

Fortune REIT said in a filing that the acquisition value represents a premium of 88.5% of the property's appraised value of about HK$1.06 billion, as of Nov. 30.

Upon the deal's completion, slated for Feb. 28, 2018, the company expects to book a gain of about HK$921.0 million from the sale.

Net proceeds from the sale will go toward general corporate purposes and for working capital, including the repayment of an existing bank loan worth HK$1.10 billion.

Fortune REIT paid HK$650.0 million to acquire the property in February 2012.