Debt-saddled Lai Sun Development sells stake in insurer AIA Group’s Hong Kong headquarters
- A wholly-owned unit of the developer has sold its equity stake in the AIA Central skyscraper for HK$1.42 billion (US$180 million) in a bid to boost its liquidity
- Lai Sun Development was saddled with total liabilities of more than HK$34.69 billion for the six months ended January 31, according to its interim results
A wholly-owned unit of Lai Sun Development Company, a Hong Kong property firm, has sold its equity stake in the AIA Central skyscraper for HK$1.42 billion (US$180 million) in a bid to boost its liquidity.
The move comes just a few weeks after the developer disposed of its interest in an industrial building in the city as it tries to overturn a mountain of debt.
The 38-storey office tower at 1 Connaught Road Central has served as the regional headquarters of Asia’s biggest insurer since 2005.
Peakflow Profits is a wholly-owned subsidiary of Lai Sun Development and an indirect, non-wholly-owned unit of Lai Sun Garment (International), according to an exchange filing.
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AIA Group will hold the remaining equity stake in Bayshore Development after the disposal.