Gelonghui, May 28 | Han Guo Real Estate (00160.HK) announced that on May 28, 2024, The Bauhinia Hotels Group Japan 2 entered into a sales agreement with the buyer relating to the sale of the property at a cost of approximately HK$93.6 million.

The property was acquired by The Bauhinia Hotels Group Japan 2 on August 30, 2023 at a cost of approximately HK$78.6 million. It is expected that the completion of the sale will confirm the unaudited proceeds of the sale of approximately HK$7.8 million.

The Bauhinia Hotels Group Japan 2 is separately funded and controlled by the joint venture, while Best Range Global (a direct wholly-owned subsidiary of Han Guo and an indirect non-wholly-owned subsidiary of Jianye) owns 60% of the joint venture.

This property includes land and a 9-storey hotel building located in Kaminarimon 1-chome, Taito-ku, Tokyo, Japan.

The management of Jianye Group and the Han Group believes that the sale is a good opportunity for the two groups to achieve satisfactory property returns and integrate joint venture resources to further develop their Japanese hotel platform. It can also enhance the joint venture's liquidity to seek other better opportunities. After the sale is completed, the joint venture plans to use the net proceeds to invest in Japanese hotel properties and expand the coverage of R Hotel in the future.