Tomson to sell Macau complex

SOCIEDADE de Formento Predial Lokson (SFPL), a joint-venture entity owned by Tomson Pacific and Sociedade de Turismo e Diversoes de Macau, said yesterday it had entered into an agreement to sell residential and office units with car parks, to be built in Macau by Fairay Investment for $1.4 billion.

Tomson Pacific plans to use proceeds of $700 million to fund development projects in China, which will be bought from 34.98 per cent-owned World Trade Centre Group (WTCG).

If the sale is not completed, Tomson Pacific will use the proceeds as general working capital.

The company expects to realise a book gain of about $430 million, of which at least $130 million will be recorded in the year to March 31, 1994.

A cash deposit of $100 million has been paid by Fairay, with the remainder to be paid in amounts of $700 million and $600 million within six to 12 months.

SFPL plans to develop the site in Macau, which is about 13,773 square metres, into a commercial and residential complex.

This is the second asset or equity deal in less than a month by Tomson Pacific, following the sale of its shares in a Macau construction company for $67.5 million. The funds will go to develop property in China.

Last week, Tomson Pacific announced a loss of $133.4 million for the year to March 31, compared with profits of $94.9 million for the previous year.

Turnover tumbled to $32.7 million from $378.9 million.

The company's results were hurt by the performance of WTCG, which posted a loss of $486 million due to an unrealised exchange loss of $380 million.