Hong Leong Asia’s subsidiary Airwell Air-Conditioning Technology (China) Co. has divested its asset in Taicang, China, for a total cash consideration of RMB141 million ($28.3 million).
Airwell Air-Conditioning Technology on September 30 entered into a sale and purchase agreement (SPA) with Taicang Loucheng High-tech Group for the sale of its property at No. 82 Guangzhou East Road, Taicang, China and the state-owned construction land use rights, home ownership rights and the facilities and assets attached to the property.
The property has a remaining leasehold tenure of around 41 years and a total gross floor area (GFA) of about 149,293.3 sqm for industrial use.
The underlying assets constitute significant operational assets of Airwell Air-Conditioning Technology, whereby the sale would lead to its eventual voluntary winding up and dissolution.
The consideration of RMB141 million was arrived on a willing-buyer and willing-seller basis after taking into the consideration of the underlying assets set out in the valuation reports issued by independent firm Taicang Zhongxin Real Estate Appraisal and Mapping.
Based on the valuation reports, the total value of the underlying assets as at Sep 4, 2019, is at RMB141.1 million.
Shares in Hong Leong Asia closed 1.5 cents lower, or 3.2% down, at 45.5 cents on September 30.
