Sincere to sell units in Kowloon for $851m

SINCERE Co is proposing to sell recently renovated units in Sincere House in Kowloon for $851 million to fund future expansion in the retail business and property development.

The property at 83 Argyle Street, Mongkok, was expected to sell for that price, according to an independent valuation report based on current market value, said executive chairman Walter Ma in a statement by the company issued last night.

Wholly-owned Sincere Finance Co will make mortgage-backed financing available to purchasers of the units, with the size of the loan not exceeding 70 per cent of the sale price of the unit.

The entire proceeds of sale might therefore not be immediately available to Sincere, Mr Ma said.

The company is mainly engaged in department store operations and property developments.

Mr Ma said the directors believed that the sale of the units would be beneficial to the company given its current and soon-to-be-expanded operations in the Kowloon peninsula.

He said the disposal would provide the company with funds for future expansion of its retail business in Hong Kong and China.

He added that it would facilitate Sincere's property development in Hong Kong, Britain, Australia, China and the United States.

The units will be marketed by Hang Cheong Surveyors. The selling agent will be Hsin Chong Real Estate Agency.

Because the proceeds from the sale will exceed 33 per cent of the value of the company's fixed assets and 50 per cent of the value of its net assets, the approval of shareholders is required.