DIMMI LIFE HLDG's subsidiary plans to sell a plot of land in Japan for HKD 21.995 million
DIMMI LIFE HLDG announced that its wholly-owned subsidiary will sell undeveloped land located in Osaka, Japan for 415 million Japanese yen (approximately HKD 21.995 million). The land has been vacant since its acquisition in 2018, and the sale will bring a premium above the book value, improve liquidity by taking advantage of market conditions, reduce the debt ratio, and reallocate capital to more competitive business areas. The expected net income is approximately HKD 20.0502 million, which will be used to repay debts or for other business development
According to the Zhitong Finance APP, DIMMI LIFE HLDG (01667) announced that on September 1, 2025, the seller (a wholly-owned subsidiary of the company, Top Shiburi Development Co., Ltd.) and the buyer (39 Real Estate Co., Ltd. and Jiahe Real Estate Consultant Co., Ltd.) entered into an agreement for the sale of a land parcel for a price of 415 million Japanese yen (equivalent to HKD 21.995 million).
The seller acquired the land parcel in May 2018. It is located at 1-32-3 Dotonbori, Chuo Ward, Osaka, Japan, with a land area of approximately 171.15 square meters, and it remains undeveloped as of the date of this announcement.
The company believes that the sale is an appropriate way to realize the value of the land parcel, which has been vacant since its acquisition in 2018. This sale presents an opportunity to obtain a premium higher than the land parcel's book value and appraisal value, benefiting from ongoing investor interest in Japanese real estate assets, particularly against the backdrop of yen depreciation and a continuously strengthening market. By proceeding with the sale, the company can take advantage of favorable market conditions and ensure its investment returns.
Furthermore, the group's business in Japan is not a core strategic focus, and the group has not invested significant resources in developing or managing its Japanese assets. The board believes that the continued ownership of the land parcel has not been actively utilized and may not provide optimal returns for shareholders. The sale will enable the group to streamline its asset portfolio, reduce administrative burdens, and reallocate capital to markets and business areas where the group has more expertise and competitive advantages.
The total net proceeds from the sale (after deducting related expenses) are estimated to be approximately HKD 20.0502 million, which the company currently intends to use to repay the group's debts or for investment and other business development. Upon completion of the sale, it is expected to improve the group's liquidity, thereby strengthening its financial position and reducing its debt ratio, while allowing the group to focus on its core business
