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Property developer Wing Tai Properties, the Hong Kong associate of Singapore-listed Wing Tai Holdings, has formed a joint venture with Manhattan Garment Holdings through their subsidiaries. Both parties have committed to contribute £230.0 million each (HK$2.3 billion) with the formation of the joint venture firm.
The deal will be made through the wholly-owned subsidiaries of both Manhattan and Wing Tai Properties, Blisspeak Limited and Speedwell Global. Manhattan is a privately held holding firm in Hong Kong focused on real estate investment holding and property development.
The joint venture company, called Kingswood Edge, will be purchasing a landmark building in London which occupies 37,499 square metres of prime office, retail and ancillary accommodation. The property which is located at 30 Gresham Street, London, has two basement levels which contains 48 car parking spaces, a lower ground and ground level, and 8 upper floors.
The formation of the joint venture firm “provides an opportunity for the group (Wing Tai Properties and its subsidiaries) to expand and diversify its property investment portfolio and generate a steady flow of rental income,” Wing Tai Properties said.
The capital contribution amount was decided after “arm’s length negotiation(s)” between the parties, said Wing Tai Properties. The contribution amount includes the consideration value for the acquisition, operational expenses expected from the property, and transactions costs.
The Wing Tai subsidiary will raise the capital injection through Wing Tai Properties’ internal resources and/or by borrowing.
Wing Tai Holding’s shares were unchanged at S$1.89, minutes into Friday morning’s trading.
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