CHINA Motor Bus Co (CMB) and Swire Properties have formed a company called Heartwell to buy the bus company's premises in Aberdeen for $383 million.
The deal follows Swire and CMB's property venture in King's Road, North Point, in August last year.
Heartwell, to be equally owned by the two companies and under the conditional agreement reached yesterday, will buy a 25,500 sq ft bus depot site at Wong Chuk Hang Road to develop an industrial building.
The net proceeds are expected to be about $382 million.
Of this, about $198 million would be used by the bus company as investment in Heartwell, and the balance would be placed on deposit and used as general working capital, said CMB chairman Ngan Shing-kwan.
'The sale will give rise to a profit before taxation of about $379 million for China Motor Bus,' Mr Ngan said.
