Hong Kong Ferry Holdings is buying retail shops in the New Territories from Hong Kong’s “Cassette King” David Chan Ping-chi for HK$260 million (US$33 million) as part of an expansion of its property investment business.
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Prosper Link Investment, a wholly owned subsidiary of the company, entered into a provisional agreement with the seller, Man Hei International Investment, to acquire various shops at Tai Hung Fai (Tsuen Wan) Centre at 55 Chung On Street in Tsuen Wan, Hong Kong Ferry said in a filing with the stock exchange on Tuesday night.
The monthly rental and licence fee income in August was around HK$1.22 million, representing an annual gross rental yield of about 5.6 per cent based on the purchase price, the filing said, adding that the purchase would be financed by the group’s internal resources.
“The group currently intends to hold the property for investment purposes to receive rental and licence income after completion,” the filing said. “The acquisition is in line with the group’s strategy and represents an expansion of the group’s existing property investment business.
“Considering the prime location of the property in Tsuen Wan and the existing tenancies and licences, the board believes that the acquisition could derive rental income and enhance its income base.”
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Chan is the director of Man Hei International Investment, according to the Companies Registry. The veteran investor has been selling assets to repay loans, with sales over the past four years amounting to HK$10 billion, he told the Post in May.