Hanison to sell stake in commercial property at HK$800m

    Hanison Construction (00896) said it agreed to sell 50% equity interest and shareholder loan of Gallant Elite Enterprises Limited at HK$800 million to Hilux II Cayman Ltd.
  Upon completion, a joint venture will be formed between the vendor and purchaser on a 50:50 basis.
  The target group holds the property known as "PEAKCASTLE" situated at No. 476 Castle Peak Road, Kowloon, Hong Kong, a commercial property, with an aggregate gross floor area of about 145,394 square feet.
  The Group expects to recognise a gain on change in fair value of investment properties of about HK$289 million before costs and expenses relating to the Disposal in the second half of the financial year ending 31 March 2018. The proceeds are expected to be used as general working capital and/or financing and possible property or other business investments.
  The purchaser is entitled to sell back the sale share and any shareholder loan made available and for the time being outstanding or due owing from the target company to the vendor at its discretion, at an exercise price with reference to 90% of the then market value of the property and consolidated net asset value of the target group to be agreed between the parties, subject to the cap of HK$1,300 million.