Broadcaster considers Tai Po as Kowloon Tong is not suitable for expansion
Hong Kong's No2 free-to-air broadcaster, Asia Television (ATV), is close to selling its Kowloon Tong headquarters ahead of a planned main-board listing.
Chief executive Chan Wing-kee said the sale of its core property asset - to be turned into upmarket residential units - would generate cash to establish a bigger production base elsewhere. He cited Tai Po as one option.
Mr Chan declined to disclose the buyer or the sale price, saying 'the deal is very close to being sealed'.
It has been reported that the headquarters at 81 Broadcast Drive, covering a site area of 50,000 square feet, will be sold for $700 million. The site was approved by the government in 1999 to be redeveloped as residential property with a total gross floor area of 137,688 sq ft.
Industry watchers see the property disposal as ATV shareholders cashing out ahead of the company's initial public offering, but Mr Chan argued that the existing headquarters could not cope with the firm's expansion plan.
Mr Chan said the company needed a bigger production base for future development, saying the Kowloon Tong headquarters, which is also the broadcaster's production base, was too small with a gross floor area of 105,000 sq ft.
