You are here

Far East Group unit to sell HK property

FAR East Group's wholly-owned subsidiary, Far East Refrigeration, has entered into a sale and purchase agreement to sell a property in Kowloon, Hong Kong to China Glory Creation for HK$5.36 million (S$937,082).

The property consists of an office and a store room with an estimated gross floor area of 876 square feet. Currently vacant, it has a tenure of 75 years, and is renewable for another 75 years. As at June 30, 2018, the carrying amount of the property was S$93,448. The proposed disposal is expected to result in a gain on disposal of approximately S$825,644, after deducting expenses.

Under the agreement, the disposal is expected to take place no later than 5pm on Nov 30. 

Explaining the rationale for the sale, Far East said: "The property is a non-core asset of Far East HK and the group. There is currently no foreseeable use for the property within the group."

Market voices on:

The group intends to deploy the entire net proceeds for use as general working capital.