Hon Kwok Land Investment Company, Limited (“Hon Kwok Land,” Stock Code: 160) announced a major transaction involving the disposal of an indirect wholly-owned subsidiary (the “Target Group”). The Target Group holds a 23-storey property on Observatory Court in Kowloon, where The Bauhinia Hotel (TST) operates. According to the provisional sale and purchase agreement dated 28 October 2025, HKL Holdings (BVI) Limited (the “Vendor”) has conditionally agreed to sell the entire equity interest and related loans of the Target Group to Brightwood Management Limited (the “Purchaser”) at a consideration comprising the property’s agreed value of HK$338 million plus the Target Group’s completion net asset value, estimated at HK$340.35 million in total.

The property has a gross floor area of around 60,894 square feet, and its preliminary market valuation was approximately HK$351 million as of 31 March 2025. Under the agreement, the Purchaser will pay a 10% deposit upon signing, with the remainder due at completion. Certain terms, including satisfactory due diligence and requisite approvals under the Listing Rules, must be met before completion. The Vendor expects to use part of the proceeds to fully repay a bank loan of HK$198 million secured by the property, with net proceeds of about HK$141 million after repayment and relevant fees.

Following completion, Hon Kwok Land will cease to hold any interest in the Target Group. The company cites its objective to rationalize its property portfolio and strengthen its financial position as key reasons for the disposal. Chinney Investments, Limited, which directly owns approximately 68.09% of the company’s shares, intends to provide written approval for the transaction. A circular with further details is slated for dispatch on or before 19 November 2025, and shareholders and investors are advised to exercise caution when dealing in the company’s shares.