GREAT WELL PROPERTIES LIMITED 偉大置業有限公司
China For You (0572) buys 2 Lincoln Road at HK$400m gross
Company announcement, 17-Aug-2015
The property is valued at HK$400m but they are buying the HK company that owns it, Metro Victor, with bank debt of $190m, for HK$210m net, of which $80m is in cash and the rest is a 2% 2-year note. The corporate transfer saves 23.5% in Buyer's Stamp Duty (15%) and Double Stamp Duty (8.5%) that anyone but a permanent resident without a home would pay. Instead they will pay 0.2% on the HK shares, or HK$380k. Metro Victor was owned by Hang Fat Ginseng (0911) until 2-Apr-2012, before its IPO. The sale then valued the property at HK$237m.
Company announcement, 17-Aug-2015
The property is valued at HK$400m but they are buying the HK company that owns it, Metro Victor, with bank debt of $190m, for HK$210m net, of which $80m is in cash and the rest is a 2% 2-year note. The corporate transfer saves 23.5% in Buyer's Stamp Duty (15%) and Double Stamp Duty (8.5%) that anyone but a permanent resident without a home would pay. Instead they will pay 0.2% on the HK shares, or HK$380k. Metro Victor was owned by Hang Fat Ginseng (0911) until 2-Apr-2012, before its IPO. The sale then valued the property at HK$237m.
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