Lai Sun Development Company Limited has agreed to sell its 50 percent stake in the China Construction Bank Tower in Central for HK$3.498 billion, in a deal that could significantly improve the financial position of its parent group.
The vendor, a wholly-owned subsidiary of Lai Sun Development (488), entered into an agreement with purchaser Jasmine Investment Development IV Limited, described in the listed company's Tuesday announcement as an independent third party. Sources indicate the buyer is a unit of mainland e-commerce giant JD.com (9618).
The 27-storey office tower at No. 3 Connaught Road Central is jointly owned by China Construction Bank (939) and Lai Sun. The property has a total gross floor area of approximately 229,206 square feet, excluding parking spaces, with direct access to Central MTR Station.
The agreed property value represents a 6.7 percent discount to an independent valuation of HK$3.75 billion as at July 31. Lai Sun stated the discount considered factors including the challenging and uncertain conditions in the Hong Kong commercial property market.
The total consideration is approximately HK$3.473 billion and the disposal is expected to generate an estimated net cash inflow of HK$2.4 billion for the group.
As at July 31, Lai Sun Garment (International) Limited (191) had net current liabilities of HK$5.42 billion, while Lai Sun Development had net current liabilities of HK$4.506 billion. Factoring in recent refinancing and assuming the disposal completes, both companies are expected to move into a net current asset position.
Lai Sun Garment is estimated to record a non-cash loss of approximately HK$269 million on the disposal, while Lai Sun Development is expected to record a loss of approximately HK$261 million.
Completion is scheduled for January 2026, subject to shareholder approvals. The deal follows a major office acquisition in Hong Kong by rival Alibaba Group, which bought 13 floors in Causeway Bay's One Causeway Bay for HK$7.2 billion in October. JD.com has been expanding its Hong Kong operations, including acquiring local supermarket chain Kai Bo.
