The AGP Group acquires property portfolio in Hong Kong and China
The Asian Growth Properties Limited has made an announcement about the acquisition of property portfolio in Hong Kong and China. This well-known property development and investment company incorporated in BVI and based in Hong Kong has agreed to acquire a portfolio of six properties in Hong Kong and China from its major shareholder SEA Holdings Limited, for the price of HK$4,430 million. It is proposed that the AGP will acquire the Target Group which is currently holding these properties.
The AGP is the holding company of a commercial, retail and residential property investment and development Group, headquartered in Hong Kong. Currently AGP has a property portfolio consisting of three development properties and one investment property, all of them located in Hong Kong. The AGP’s total asset value and net asset value were, at 30 June 2006, HK$2,221 million and HK$1,575 million respectively.
The SEA Group is a public company listed in Hong Kong, which specializes in developing and investing in high quality office, retail, residential and resort properties in Asia Pacific countries including Hong Kong, China, Indonesia, New Zealand and Australia. SEA is holding approximately 85.42% shares and is the major shareholder of AGP. The portfolio of properties of SEA in the Target Group makes the majority of SEA’s real property investment and development assets in Hong Kong and China.
Don Fletcher, Chief Executive Officer of AGP, in his comments on the proposed transaction noted that the Board of AGP sees this transaction as an exciting expansion of AGP’s activities in the property market of China and Hong Kong. It is an opportunity to increase the size of company’s property portfolio for an attractive price. Also, the Directors of the company consider that the acquisition is consistent with the Company’s stated strategy of property investment and development in the Asia Pacific Region, with the main focus on Hong Kong and China.
On completion, the AGP Group will have six development properties and four investment properties, which should enhance the Company’s position in the investment market and enable it to seek a broader institutional shareholder base over time.