Debt-burdened Lai Sun Development (0488) is reportedly planning to sell its 50 percent stake in office building CCB Tower in Central, according to Bloomberg, citing sources.
The Hong Kong developer said in response that it, as a property firm, would consider offers at favorable prices.
It added that it is implementing a planned asset disposal strategy and will actively evaluate suitable opportunities.
Lai Sun had previously revealed plans to sell HK$8 billion in assets over the next two years to improve its financial position.
Bloomberg reported potential buyers include China Construction Bank Corporation (0939), which holds the other 50 percent of the project.
In the six months ending in January this year, CCB tower generated HK$114.4 million in rental income.
Formerly the Ritz-Carlton Hotel, the 27-story office building spans about 229,000 square feet, with 18 office floors and a banking hall leased to CCB for its Hong Kong operations.
The move comes as Lai Sun is seeking a five-year refinancing for a HK$3.5 billion bank loan due on October 5.
Bloomberg earlier reported that only nine out of 19 lenders had agreed after six months of talks. Lai Sun responded that it has secured support from most banks and the refinancing is progressing as planned.
STAFF REPORTER
