Wing Hang Bank sells former office space
Wing Hang Bank sold three office floors at Grand Millennium Plaza in Sheung Wan to two associates for HK$436.21 million after it moved operations at the property to reduce rent.
Based on the property's book value, the bank estimates that it can book a pre-tax gain of HK$155.3 million from the deal, after taking into account about HK$400,000 in expenses, and HK$63.7 million in its interest in the buyers and their spending on the properties.
As at August 31, the unaudited net book value of the three floors - 15th, 17th and 18th - amounted to HK$216.9 million.
The buyer of the 15th floor is Hong Kong Life, 33.3 per cent-owned by Wing Hang Bank. The bank's director Patrick Fung and an employee, William Ng Wah, are directors of Hong Kong Life. The other two floors were sold to Bank Consortium Trust, a unit of Bank Consortium Holdings in which Wing Hang Bank holds 26.7 per cent.
The sale came after the bank moved certain operations from the building to Shau Kei Wan.
Wing Hang Bank said net sales proceeds from the disposal would be used as working capital. Wing Hang Bank is a Hong Kong-licensed lender with consolidated total assets of HK$122.2 billion as at December last year.