According to a report from Economic Information Agency on the 17th, Yuzhou Group (01628) announced the sale of the property on the 58th floor of Central Center for approximately HKD 269 million to an independent third party, Xu Yanling, ultimately owned by Xinyao Limited. Both parties have signed a preliminary agreement, and it is expected to incur a loss of about HKD 83.02 million.

The group stated that the property for sale includes rooms 5801, 5802, 5803, 5805, 5806, and 5813 on the 58th floor of Central Center, 99 Queen's Road Central, Hong Kong, with a total construction area of approximately 13,400 square feet. Part of the property is currently used by the group as office space, while another part is vacant. Last year, the property incurred a loss of about HKD 45.31 million. The independent professional appraiser, Jones Lang LaSalle, indicated that the property was valued at HKD 268 million as of April 30.

The group indicated that the net proceeds from the sale are intended to be used for debt repayment, and it is expected that the portion used will be leased back to the group by the buyer upon completion. As of yesterday, both parties had not yet established a final or legally binding agreement regarding the post-sale leaseback arrangement. (wh)