Chinese Estates Holdings plans to acquire more land for property development with cash from the sale of four luxury homes on the Peak.
Last month, the company announced it would sell the properties at 31 Barker Road for $382.79 million to majority shareholder Joseph Lau Luen-hung.
The sales are part of a broader transfer of assets, including luxury residential units on Hong Kong Island and certain works of art, to Mr Lau for a consideration of $642 million.
The sale of the Barker Road houses raised eyebrows as the company had reportedly been asking more than $500 million.
Mr Lau, who is also executive director of Chinese Estates, defended the property transaction yesterday, saying the deal was clearly to the advantage of Chinese Estates shareholders.
He said a profit-sharing arrangement signed with Chinese Estates required him to return 80 per cent of any profits achieved if the properties were sold for a premium within two years.