Wing Tai sells UK property-holding subsidiary for $74.8m

It is expected to generate a gain of approximately $5.1m.

Wing Tai Properties has divested its entire interest in UK-based Topworth Enterprises, a property-holding company, for $74.8m (GBP43m/ HK$452m), the company announced on 20 June after market hours.

The transaction was executed through the group’s indirect wholly owned subsidiary, Wing Tai Properties (Europe) Limited, which entered into a sale agreement with Clas Puma Limited. Wing Tai Properties also acted as guarantor under the deal to cover tax-related obligations.

Topworth Enterprises holds full ownership of the underlying property. Following completion—finalised on the same day as the agreement—Topworth Enterprises has ceased to be part of the Wing Tai group, and its financials will no longer be consolidated into the group’s accounts.

The deal is expected to generate a gain of approximately $5.1m (HK$31m), with net proceeds of about $74.4m (HK$449m) to be used as general working capital.

The sale price was reached after arm’s length negotiations, based on an agreed property valuation of GBP43m.

“The disposal presents a good opportunity for the group to realise its investment at a reasonable price,” Wing Tai said, noting that the transaction is part of its ongoing strategy to optimise its property portfolio and maximise shareholder value.

The buyer, Clas Puma Limited, and its ultimate beneficial owner are third parties independent of the group and are not considered connected persons under Hong Kong’s Listing Rules.