Hong Kong-listed Suncity Group Holdings Ltd has offloaded its mainland China property development business as it continues to focus on its growing Asian hospitality interests.
Suncity revealed overnight that it has reached an agreement to sell its entire interest in Access Achievement Limited and all associated subsidiaries, including its principal asset Sun Century Property, for RMB155.3 million (US$23.9 million). Sun Century owns Hong Long Plaza and property development arm Shenzhen Zirui, which holds unsold units at a development in Shenzhen called Le Paysage.
The sale price, representing a discount on valuation of properties under Access Achievement’s portfolio of RMB1.18 billion (US$181.9 million). However, Suncity noted that Access Achievement had reported losses of RMB363.45 million (US$56.0 million) and RMB184.85 million (US$28.5 million) in 2019 and 2020 respectively and that it was unlikely to receive a higher offer price.
“The Disposal represents an opportunity for the Group to sell all the remaining unsold units of Le Paysage in one transaction; realize its investment in Hong Long Plaza; focus and deploy its resources on the business of the Remaining Group; and reduce the debts of the Group,” Suncity said. The proceeds will be used to pay down debt and for general working capital of the group, it added.
With its Chinese property development arm now sold, Suncity said its main revenue contributors will now comprise its stake in and operations of Hoiana in Vietnam, majority interest in Russia’s Tigre de Cristal and a hotel-casino development in Manila, property development in Japan by way of non-gaming resorts in Hokkaido and Okinawa, and the leasing and management of retail malls in mainland China.