Swire Pacific’s property arm to sell its 50 per cent stake in 625 King’s Road for US$303 million

Swire Pacific’s property unit has reached an agreement to sell its entire 50 per cent stake in the owner of a commercial building in Hong Kong for HK$2.38 billion (US$302.6 million).

Swire Properties will sell its stakes in Island Land Development, which owns 625 King’s Road, a 26-storey tower in North Point, the parent company said in an exchange filing on Tuesday night. Swire Properties will record a gain of as much as HK$1.76 billion (US$220 million) from the sale to Jacko Rise Pte and the proceeds will be used to replenish its working capital, according to the statement. Swire Pacific will reap a gain of up to HK$1.4 billion (US$180 million) from the sale, given its 82 per cent stake in Swire Properties, it said.

Communication Holdings, a wholly-owned subsidiary of China Motor Bus that holds the remaining 50 per cent in Island Land, will sell its stake to CMB Disposal, pending approval by the shareholders of the acquirer, the statement said.