CSI Properties sells J Plus hotel and an adjacent site in Causeway Bay for HK$1.7 billion

CSI Properties sells Causeway Bay hotel and adjacent property

PUBLISHED : Monday, 09 January, 2017, 10:20pm
UPDATED : Monday, 09 January, 2017, 10:39pm

CSI Properties announced on Monday that it has sold its J Plus hotel and an adjacent site in Causeway Bay for HK$1.7 billion to finance its new projects in Hong Kong and on the mainland.

The company said the asset disposal would reap a gain of HK$1 billion.

Proceeds from the transaction would be reinvested in new projects, including the Oriental Crystal Building in Central, the Legendaire Residence in Beijing and the Richgate Shopping Arcade in Shanghai, according to a company statement.

“The disposal is another prime example of CSI’s well-proved strategy in value enhancement and capital recycling,” said Mico Chung, group chairman of CSI Properties. “The disposal proceeds will further strengthen our solid balance sheet and pave the way for further future growth of our group.”

CSI currently owns and manages a number of prime investment properties in Hong Kong, Shanghai and Beijing. These include the ground floor shops, an office on the 15th floor, and 52 car parking spaces of AXA Centre in Wan Chai, a 30 per cent interest in an office site in Kowloon Bay and a 50 per cent stake in a development site at 232 Wan Chai Road.

Shares of CSI Properties closed at 28.5 HK cents on January 6 before they were halted from trading at the company’s request at 9am on Monday, pending an announcement detailing the property sales.