Winsor Properties has a conditional agreement to sell Winsor Centre, in Tsuen Wan, for an undisclosed price. The company said the price would be announced when the disposal became unconditional and it would represent a discount to the property's book value of HK$1.1 billion. But it would generate a profit. Winsor's management declined to disclose the purchaser's identity but property agents said it was a foreign company out to convert the building into a data centre for e-commerce business. The disposal is conditional on due diligence by the purchaser and a certificate of compliance of the conditions of exchange being obtained from the Government. Under the agreement, the purchaser has committed to buy certain spaces in the building and has options to buy the rest. The building, at 168 Yeung Uk Road, has 1.24 million square feet of industrial or godown area designed as a cargo centre. Last year Winsor sold 86,741 sq ft of the building to related parties for HK$71 million and booked HK$13.26 million as operating profit in the unaudited accounts for the six month to September 30. Winsor will buy back the spaces to fulfil the latest disposal. Director Lam Woon-bun said that as the 86,741 sq ft of space was owned by a related party - Winsor Industrial - the repurchase was not a problem. The building was now 30 per cent to 40 per cent occupied with monthly rents of HK$4.5 to HK$5 per square foot. Winsor carried bank borrowings of about HK$1.1 billion, representing a gearing ratio of 50 per cent. The cash generated from the property sale could be used partly to reduce debt. Mr Lam said it also had a project for future investment - a 90,000 sq ft site in Kwun Tong. It had paid a HK$220 million land premium to convert the site into an industrial-office property. Winsor had sought to convert the site for office use but had been turned down by the Town Planning Board. The company was not in a rush to proceed with the project.