CHUANG'S Consortium International will use proceeds from the sale of Chuang's Finance Centre to finance the $1 billion purchase of London Plaza in Kowloon.
Bernard Ko, managing director of the company's parent Uniworld Holdings, said the net proceeds of the $430 million sale of Chuang's Finance Centre would be about $380 million.
For the acquisition of London Plaza, about $500 million would be funded by bank borrowings, and a further $120 million would be pumped in from internal resources.
He said the sale of Chuang's Finance Centre and the purchase of London Plaza reflected the company's strategy shift from low-yield properties to higher-yield assets.
Mr Ko said that following the sale and acquisition, the company's net debt would be less than $500 million, compared with shareholders' equity funds of up to $3.5 billion.
He said the group felt ''comfortable'' with its debt exposure.