On September 24, 2026, the seller Mid-Levels Portfolio Holdings Limited, an indirectly wholly-owned subsidiary of Kerry Properties (00683), entered into an agreement with the buyer Kerry Holdings, pursuant to which the seller agreed to sell, and the buyer agreed to acquire, the sale shares (representing the entire issued share capital of the target company Mid-Levels Portfolio (Gladdon) Holdings Limited) and the sale loan for a consideration.
Upon completion, the group will no longer hold any interest in the target group, and the financial results, assets and liabilities of the target group will no longer be consolidated into the group's consolidated financial statements.
The target company's principal asset is its entire interest in the property company. The property company's principal asset is the property. The property comprises a top-floor special unit located at 3 May Road, Mid-Levels, Hong Kong, with a saleable area of approximately 1,405 square feet, together with a terrace of approximately 820 square feet above the ground floor entrance lobby and 14 separate garages.
The group regularly reviews its property portfolio to optimise capital allocation and enhance shareholder value. The property is a non-core investment property within the group's property portfolio. Following a review of the group's non-core assets, the directors believe that the transaction provides an opportunity for the group to realise the value of the property at an attractive selling price and to release capital for redeployment into the group's core property development and investment businesses.
Upon completion, the group expects to recognise a gain of approximately HK$5 million. The expected gain is calculated by reference to the consideration, after deducting the group's share of the book value of the target group, and taking into account estimated transaction costs and professional fees relating to the transaction. The actual amount of the gain is subject to review by the auditors and will depend on the final determination of net asset value adjustments, transaction costs and expenses, and may therefore differ from the above amount.
The net proceeds from the transaction are intended to be used as general working capital and for general corporate purposes of the group.
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