Developer Kerry Properties will acquire the remaining 40 per cent stake in a warehouse operation from its partners for HK$110 million. Analysts said the purchase was at a fair price and would strengthen the group's logistics business. Kerry Properties said in a statement to the stock exchange that Kerry Warehouse, an indirect wholly owned subsidiary, would buy shares and loans of Kerry BCI Warehouse from Glad Honour and Wellbusy, which are connected to the developer. Kerry BCI will become a wholly owned subsidiary of Kerry Warehouse after the acquisition. Both Kerry BCI Holdings and Kerry Warehouse are investment holding companies that provide logistics services and warehouse operation and ownership. '[Making Kerry BCI a direct wholly owned subsidiary of Kerry Warehouse] enables the group to consolidate all the interest in Kerry BCI,' the company said. Dao Heng Securities analyst Eric Yuen Chi-fung said the acquisition represented a price-earnings ratio of 9.6, which he said was a fair deal. The move showed Kerry's determination to strengthen its logistics business, he said. 'Kerry has always wanted to strengthen its logistics business and the move is in line with its plan,' Mr Yuen said. 'Besides, the government always emphasises the importance of developing the logistics industry.' Kerry Properties said the net asset value of Kerry BCI was HK$13.52 million as at December 31, 2001. It posted a net profit of HK$28.53 million. Kerry Properties finished trading yesterday at HK$6.35.