ABLE ENG HLDGS (01627) Wins Hong Kong Tung Chung Site for HK$1.627 Billion, Diversifying into Property Development

Stock News
May 20

ABLE ENG HLDGS (01627) announced that its wholly-owned subsidiary, Excellent Limited (the Buyer), has received a letter of acceptance from the Lands Department of the Hong Kong Special Administrative Region Government. This confirms the acceptance of the Buyer's tender for a site, Lot No. 54 in Tung Chung Town, Area 106A, New Territories, Hong Kong. The site has a total site area of approximately 14,200 square meters and was secured at a land premium of HK$1.627 billion. Designated for private residential use, the site can support a maximum gross floor area of 49,500 square meters. The Buyer will enter into the Conditions of Sale with the Government, which outlines the terms of this potential acquisition. The land premium will be funded by the Group's internal resources and new bank financing. The site is intended for development into private residential units, and the Company is optimistic about the long-term prospects of this investment. This move allows the Company to diversify its business segments and expand into property development, thereby broadening the Group's long-term revenue streams. It also aims to create business synergies by leveraging the Company's core construction capabilities. The Board of Directors believes the terms of the Conditions of Sale are on normal commercial terms, and the potential acquisition is fair and reasonable, aligning with the overall interests of the Company and its shareholders.

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