Mainland developer Shimao Group (0813) announced on Thursday that its Sheraton Hong Kong Tung Chung and Four Points by Sheraton Hong Kong Tung Chung, have been sold for HK$2.7 billion, with completion expected by the end of 2026.
The buyer was Oceanfront Hong Kong Limited, a company owned by, among others, investment vehicles associated with Malaysia-based property developer ParkCity Group, according to Shimao’s statement.
Shimao said its indirect wholly-owned subsidiary, Brand Rise Limited, acting through the receivers as its agent, entered into two inter-conditional sale and purchase agreements with the purchaser for the sale of the hotels and the hotel business carried on at the hotels.
Shimao said that the net sale proceeds will be applied by the receivers towards partial repayment of the outstanding indebtedness under the syndicated loan agreement dated 27 July 2020, which is secured by the debenture and mortgage.
“This will reduce the overall indebtedness of the Group and strengthen its financial position, consistent with the Group’s ongoing efforts to address its liabilities in an orderly manner,” Shimao said.
The property offers a total of 1,219 guest rooms, making it the second largest hotel in Hong Kong by number of rooms.
