HK Developer Shun Tak Bags Prime Shanghai Real Estate for USD667.4 Million
Chen Juan | Xu Wei
DATE:  Dec 06 2019
/ SOURCE:  yicai
HK Developer Shun Tak Bags Prime Shanghai Real Estate for USD667.4 Million HK Developer Shun Tak Bags Prime Shanghai Real Estate for USD667.4 Million

(Yicai Global) Dec. 5 -- Shun Tak Holdings, a Hong Kong property and transport conglomerate, has taken a half stake in a prime piece of real estate in downtown Shanghai for about CNY4.7 billion (USD667.4 million) in a deal that it said will bring in sales revenue and long-term rental income. The company's shares gained.

Located next to Suzhou River, the 24,900-square-meter plot is less than 1 kilometer from the Bund, Shanghai's famous waterfront area. Once completed, there will be around 329,000 square meters of office space as well as commercial and residential properties, Shun Tak said in a statement yesterday.

Shun Tak is buying the share originally owned by Overseas Chinese Town Enterprises. Shenzhen-based OCT bought the plot in 2016 for around CNY6.9 billion (USD980 million) together with investment firm China Resources Holdings.

Shares of Shun Tak [HKG:0242] rose 1.27 percent today to close at HKD3.20 (USD0.41) each, outpacing the benchmark Hang Seng Index, which inched 0.6 percent higher. Shun Tak's stock has gained by a third this year.

Shun Tak's two subsidiaries have bought the land through a unit of Shanghai-based real estate developer China Enterprise which will be entitled to a 20 percent stake.

The sale will help OCT focus on its primary business of cultural and tourism products, it said earlier, adding that it is under no financial pressure. Business is stable and profitability is good, the company said.

Shun Tak's core businesses are in transportation, property, hospitality and investments. Owned by Pansy Ho Chiu-king, the firm was founded by her father, legendary Macau gaming kingpin Stanley Ho.

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Keywords:   Pansy Ho Chiu-king,HK,Macao