CHINACHEM Group will acquire the ONFEM Centre in Central and a related loan interest for $900 million from ONFEM Holdings. Subject to the disposal, ONFEM agreed to pay $415.36 million for a recently completed commercial building in Wyndham Street from Kong Fu Realty. The company's property acquisition will be financed by part by the proceeds from the proposed disposal of ONFEM Centre. ONFEM expected to realise a profit of about $251 million from the sale of ONFEM Centre, the third floor of which houses the company's existing headquarters. Under the deal, Chinachem will pay $248.3 million for the share capital of Neweast Development, beneficial owner of ONFEM Centre, and buy a debt owed by Neweast to ONFEM on a dollar-for-dollar basis. It is estimated that Neweast was indebted to ONFEM for about $651.7 million on March 31. Chinachem has paid a deposit of $30 million, which is three per cent of the total acquisition cost. A further 33 per cent is payable on March 31, a further 45 per cent due on April 1, and the balance is due by April 1, 1996. ONFEM Centre, situated at 68 Connnaught Road Central and 135 Des Voeux Road Central, has a gross area of 93,567 sq ft. It generated a rental income of $25.18 million from March 18, 1993 to March 31, 1994. ONFEM said it intended to use about $320 million from the proceeds to release the existing mortgage over the property and $415 million to finance its acquisition of the Wyndham Street building. It also planned to use the balance of the proceeds to diversify its property investment portfolio and participate in industrial businesses. ONFEM said its proposed acquisition of the 54,131 sq ft Wyndham Street building was for investment purposes. It intends to occupy two floors, totalling about 4,400 sq ft of the building as its headquarters with the remainder for rental purposes. ONFEM has paid an initial deposit of $10 million for the acquisition. The balance is payable upon completion of the deal on or before April 1. ONFEM will have to pay commission to C Y Leung & Co for involvement in the two property deals. The amount of commission is being negotiated. Leung Chun-ying, managing director of C Y Leung & Co, is a non-executive director of ONFEM.