STAR GROUP ASIA (01560) announced that on November 4, 2025, the seller Wing Tat Development (an indirect wholly-owned subsidiary of the company) entered into an agreement with the buyer Wai Yung. Under the agreement, the seller agreed to sell and the buyer agreed to purchase the property for a consideration of HK$48.367 million.

According to the terms of the agreement, the buyer agreed to lease the property back to a designated tenant (the company or one of its wholly-owned subsidiaries) upon completion of the sale. The monthly rent is set at HK$185,000 (excluding government rent, rates, and management and air-conditioning charges, all of which will be borne by the designated tenant). The initial lease term is two years from the completion date, with an option for the tenant to renew for another two years.

The property to be sold includes office space and ancillary areas on the 20th floor of Silver Fortune Plaza at 1 Wellington Street, Hong Kong, with a total gross floor area of approximately 4,397 square feet. The premises are currently used and operated by an indirect subsidiary of the group as a co-working space.

The board has been evaluating Hong Kong's commercial environment, developments in the commercial property market, and the company's financial position. The directors believe that the sale will allow the group to realize its investment in the property, mitigate the downturn and uncertainties in Hong Kong's commercial property market, and improve the group's debt, liquidity, financing costs, and overall financial pressure.

The sale-and-leaseback arrangement will enable the group to continue operating its co-working space business at the property without the need to expend resources and costs to relocate or restore the property to vacant possession upon lease expiry.