Wing Wan Department Store HK $634 Million To Sell Kwai Chung Logistics Centre

(Hongkong) department store Limited announced in October 9th that the company had entered into a conditional sale and purchase agreement with Prosperity Development Limited. Accordingly, the company has agreed to sell a property at Kwai Chung Industrial Street in Hongkong, New Territories, at a price of HK $634 million.

AEON (Hongkong) department store Limited announced in October 9th that the company entered into a conditional sale and purchase agreement with Prosperity Development Limited. Accordingly, the company has agreed to sell a property in Kwai Chung Industrial Street, New Territories, Hongkong, at a price of HK $634 million.

On the date of this announcement, AEON store has obtained the written approval of the major shareholder, AEON Co., Ltd. (holding and beneficial shares of 178 million shares of aeon department store, accounting for about 68.27% of the total issued share capital) on the sale.

The property is Weixin logistics center, No. 24-28, Kwai Chung Industrial Street, New Territories, Hongkong. The whole building is about 280 thousand square feet, 15 stories high, and about 20 parking spaces. It can be used for industrial, warehouses and subsidiary office buildings.

Statistics show that the logistics centre was purchased by HK $310 million in 2010.

At that time, AEON general merchandise indicated that it intends to use the property as a group's Hongkong headquarters after the current lease agreement expires.

According to the current lease agreement, the actual monthly rent (excluding rates and rent) is about HK $1 million 650 thousand.

In the year 2012 and December 31, 2013, the pre tax net profit of the above properties was approximately HK $120 million and HK $59 million 765 thousand respectively.

By the end of June 2014, the carrying value of the property was approximately HK $590 million.

According to AEON, the sale is a good opportunity for the company to liquidate its investment.

If the paction is completed on schedule, the group will record an additional income of HK $39 million in 2014.

It is reported that the company has announced that it has received and is considering an offer from the independent third party about the potential sale company's fixed assets.

So far, no binding agreements have been signed.

According to the book, if Yong Wang successfully sold HK $700 million, it earned about HK $390 million.