Guoco Group expects to generate HK$1.76 billion from sale of site in Beijing
Guoco Group expects the sale of its 90 per cent stake in a large residential-commercial site in Beijing would generate a net profit of approximately HK$1.76 billion, the company said in filing to the stock exchange on Friday.
In August, Guoco Land China, a wholly owned subsidiary of the group, agreed to sell its entire 90 per cent interest in a 91,287.7 square metre site in Dongcheng district, Beijing for 10.5 billion yuan to China Cinda Asset Management.
Its 65.2 per cent owned Guoco Land expects to generate HK$2.69 billion from the transaction.
The site, which will yield a total gross floor area of 512,800 sq metres, is designated for residential, hotel, office and commercial use, the company statement said.
The construction works of the property has been suspended and the property is vacant.
“Approximately one-third of the net proceeds of the transaction is used for repayment of debts and the balance for general working capital of the Guoco Land,” it said.