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Goldin sells Rich Fast for HKD 3.5bn
Posted on Wednesday, 29 July 2020 08:41
Goldin Financial Holdings sold Rich Fast International to Yan You for HKD 3.48 billion (USD 448.99 million) after amending a prior agreement worth HKD 2.87 billion.
The British Virgin Islands-incorporated acquiror is an investment holding entity controlled by independent third parties.
Rich Fast was incorporated in Hong Kong in October 2018 as a wholly-owned subsidiary of Gold Flair Holdings, which, in turn, is fully owned by Goldin, immediately prior to completion of the deal.
It is engaged in property development and its principal asset is the land parcel known as New Kowloon Inland Lot No 6591, situated at Kai Tak Area 4B Site 4, Kai Tak, Kowloon.
This site covers a total area of 9,708 square metres with minimum and maximum developable gross floor area of 32,037 square metres. and 53,394 square metres, respectively.
It is earmarked for private residential use, though foundation work has yet to start.
As at 30th June 2020, the unaudited net liabilities of Rich Fast amounted to HKD 20.00 million.
This is based on taking into account the book value of HKD 9.29 billion, loans and amounts due to Goldin of HKD 5.70 billion in aggregate, and the outstanding principal amount of a HKD 3.56 billion bank loan.
As at 31st March 2020, the property had a valuation of HKD 7.00 billion and would have had an adjusted net asset value (NAV) of HKD 3.39 billion, as at 30th June 2020.
The consideration represents a premium of 2.7 per cent over the adjusted NAV.
Goldin is an investment holding company involved in real estate development, winery and related operations, factoring services, and financial instruments.
Directors “consider the overall business environment in Hong Kong is experiencing increasing challenges”, according to the statement.
This in turn is “causing uncertainties and pressure to the group’s property development and investment businesses in the near term”.
A divestment will improve financial flexibility by receiving fresh capital that can be used to repay borrowings.
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