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."

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