HON KWOK LAND (00160) is planning to acquire a hotel property located in Osaka, Japan.

HON KWOK LAND (00160) and CHINNEY INV (00216) jointly announced that on February 7, 2025, The Bauhinia Hotels Group Japan 5 entered into a sales and purchase agreement with the seller and Green Estate. The Bauhinia Hotels Group Japan 5 (as the transferee) agreed to receive and assume all rights and responsibilities under the sales contract related to the property acquired by Green Estate from the seller, for a price of approximately 1.22 billion Japanese Yen (equivalent to approximately 62.20 million Hong Kong Dollars, including local consumption tax). The Bauhinia Hotels Group Japan 5 was established in accordance with the TK arrangement, with joint ventures, Best Range Global, and Hengjing Japan contributing and controlling 50%, 21%, and 29% respectively. As the joint venture is owned 60% by Best Range Global and 40% by Hengjing Japan, Best Range Global and Hengjing Japan effectively control 51% and 49% of The Bauhinia Hotels Group Japan 5, respectively. Best Range Global is a direct wholly-owned subsidiary of Hon Kwok and an indirect non-wholly-owned subsidiary of Chinney Inv. The property is located in a prime area of Osaka, adjacent to Tennoji Station, one of Osaka's most important transportation hubs, connecting Japan's railway lines, Osaka subway lines, and Kansai International Airport. The property was introduced by Green Estate in mid-2024, at which time it was leased to a Japanese hotel operator. However, Best Range Global and Hengjing Japan were not satisfied with the performance of the hotel operator and no further progress was made. On the other hand, Green Estate took over the property and subsequently arranged for the termination of the lease. Best Range Global and Hengjing Japan then reconsidered the project and decided to acquire the property from Green Estate. Therefore, the property will be transferred to The Bauhinia Hotels Group Japan 5 upon completion of the acquisition. The Bauhinia Hotels Group Japan 5 plans to renovate the property and lease it to an independent hotel operator in Japan, who is a strategic partner operating four hotels for the joint venture in Japan. It is expected that the property will provide a stable additional recurring income source for Chinney Inv and Hon Kwok in the long run and make a positive contribution.