Henderson Land to sell Newton Inn to Shun Ho for HK$1 billion

Henderson Land Development Company and Shun Ho Property have reached a conditional share sale agreement worth HK$1 billion, the former said in a filing to the Hong Kong stock exchange on Friday evening.

The purchaser, Shun Ho Property, has conditionally agreed to purchase the shares, representing the entire issued share capital of the target company, together with the sale loan, the filing said.

The target company owns a 100 per cent interest in Conradion, which is operated as a hotel located at No 88 Chun Yeung Street, North Point, Hong Kong and known as Newton Inn, it said.

For the year ended December 31, 2016, the target company reported revenue of HK$18 million. The adjusted net asset value of the target group was approximately HK$999.9 million as at December 31, 2016, the filing said.

William Cheng Kai-man, chairman of Shun Ho, said: “I believe it is the biggest local hotel transaction since the tourism slump.”

“I am confident about a recovery is right in front of us,” he said.

A HK$100 million deposit is requited and the remainder will be due upon completion of the sale, the filing said.