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CIL pays $104m for property

CHINA Investments Ltd (CIL) is buying the 12th floor of Nine Queen's Road Central for $104.96 million, or $7,650 a square foot, in a connected transaction.

The floor was bought from Grimshaw, a subsidiary of China Weal, which has an interest in 23.5 per cent of CIL through a holding company called Rich Fond.

Grimshaw had bought the floor on September 21, for the same consideration, from Innsbuck, which bought the building from Hongkong Land for $3.8 billion in the summer.

Innsbuck is 25 per cent owned by China Weal and five per cent by CIL.

A deposit of $10 million has been paid in the deal, to be followed by a $21.49 million payment on Friday. The balance is due on March 31.

The property is leased out under a six-year agreement, with an annual rent of $4.76 million.

China Investments said: ''The directors of CIL consider that the acquisition represents a good investment opportunity. It is the intention of CIL to hold the property value as a long-term investment.'' An independent board committee has been set up to advise independent shareholders on the acquisition.