CCT Fortis (00138) has agreed to sell Unit Nos. 01, 02, 03, 05, 06, 07, 08, 09 & 10 on the 18th floor of CCT Telecom Building, Sha Tin, to Hong Kong-based Trimworld Ltd for HK$42.45 million in cash. The property, comprising about 14,427 sq ft of gross floor area, is currently vacant and was last used as the group’s offices until September 2023.

The consideration was set after arm’s-length negotiations and exceeds an independent valuation of HK$42.00 million, but is below the property’s audited carrying value of HK$68.30 million as at 31 December 2025. CCT Fortis therefore expects to record an unaudited disposal loss of roughly HK$26.43 million for FY 2026.

Net sale proceeds of approximately HK$41.87 million will be used to repay revolving loans secured by a mortgage over the asset, immediately lowering interest expenses. Completion is scheduled on or before 31 July 2026, with an initial deposit of HK$1.23 million and a further HK$2.87 million already paid; the HK$38.35 million balance is due at completion.

The board cites two main reasons for the transaction: the property’s current idle status and the opportunity to reduce debt amid a “sluggish market”. As at 31 May 2026, the group carried HK$1.62 billion in bank and other borrowings, HK$88.00 million in convertible bonds and held HK$12.00 million in cash, resulting in net current liabilities of about HK$300 million. Certain loan covenant breaches have been waived until 31 December 2026. Directors believe the disposal, coupled with existing cash resources, will provide sufficient working capital for at least the next 12 months.

The sale constitutes a “major transaction” under Hong Kong listing rules (percentage ratios between 25% and 75%). A closely-allied shareholder group led by Chairman and CEO Mr Mak Shiu Tong, holding 74.98% of issued shares, has given written approval under Rule 14.44, eliminating the need for a general meeting.

The company affirms that the disposal terms are fair and in shareholders’ best interests, and that the transaction will not materially affect ongoing operations across its property, securities, automotive and cultural-entertainment businesses.