K2 F&B Holdings Limited (2108) has announced an agreement to dispose of nine units in Singapore’s People’s Park Centre for S$28 million (equivalent to approximately HK$171.64 million). The property, used primarily as an air-conditioned food centre, comprises eight adjacent units and one separately leased unit. Upon completion, the group will lease back the premises at a monthly rent of S$75,000 (approximately HK$460,000) for an initial three-year term, with an option to renew for another three years.

Based on its fair value of around S$23.5 million (HK$144.06 million) as of 31 December 2024, the transaction is expected to result in an overall gain of approximately S$3.4 million (HK$20.84 million). Net proceeds of about S$26.9 million (HK$164.90 million) are planned for repaying bank loans linked to the property, reducing other short-term borrowings, and providing general working capital.

Under the Listing Rules, the disposal constitutes a major transaction, while the related leaseback deal is categorized as a discloseable transaction. The controlling shareholder, Strong Oriental, has approved the disposal in writing, making a general meeting unnecessary. Completion remains subject to various conditions. Investors are advised to exercise caution when dealing in the company’s shares.