ONFEM Holdings, a listed subsidiary of mainland conglomerate China National Non-Ferrous Metals Industry Corp, has sold a building in Tsuen Wan to Emperor International Holdings for $955 million.
Emperor paid $30 million yesterday and a further of $113.25 million will be paid on the signing of the agreement. A further $95.5 million will be paid to Onfem on April 6 and the balance on completion, expected on or before June 20.
The property has a book value of $850 million, and the deal gives Onfem a profit of $105 million before expenses. The building is generating monthly rental income of $4.62 million.
Onfem said it would use the proceeds from the sale to ''retire certain banking facilities, provide working capital for the company, and to fund future investment projects''.
Emperor said recently it intended to specialise in property development in a bid to shed its image as a deal-making firm intent on making money rather than building a solid financial base.
Last month it sold the Wang Kee Building in Central for $880 million, making a quick profit of $206 million after buying the building in November last year for $650 million.
