$565m paid in Yaohan office sale

PUBLISHED : Friday, 27 May, 1994, 12:00am
UPDATED : Friday, 27 May, 1994, 12:00am

YAOHAN International has announced the sale of its headquarters and administrative offices for $564.8 million to an independent third party called Highpot.

The offices, located on two floors of Convention Plaza's office tower, were sold to capitalise on the buoyant property market, to provide working capital and funds for other investments and to reduce bank loans. The sale generated a book profit of $312 million.

The department store faces rental revisions this year which could exacerbate reported cash flow problems.

The two floors have a total gross floor area of about 32,744 square feet which the company has used since 1990.