FE CONSORT INTL (00035) intends to sell UK hotels and municipal properties to increase liquidity and reduce liabilities.

FE CONSORT INTL (00035) announced that on February 25, 2025, its indirect wholly-owned subsidiary, Quality Drive Limited, intends to sell all issued shares of Quality Hornsey Propco Limited (hotel property company) to AMTD IDEA Group for a hotel price of 22.65 million (approximately HK$222 million), plus the net asset value of the hotel target group (excluding the value of the hotel property). On the same day, the company's indirect wholly-owned subsidiary, Hornsey TH Holdco Limited, intends to sell all issued shares of Hornsey TH PropCo Limited (town hall property company) to AMTD IDEA Group for a town hall price of 24.54 million (approximately HK$240 million), plus the net asset value of the town hall target group (excluding the value of the town hall property). The directors estimate that upon completion of the hotel transaction, the group is expected to gain approximately 6.32 million in profits; and upon completion of the town hall transaction, the group is expected to gain approximately 8.442 million in profits. The announcement states that one of the group's core businesses is the development, ownership, and operation of hotels. The hotel target group operates hotel properties (a hotel developed by the group) and owns the property outright. The town hall target group operates town hall properties (developed by the group, non-core assets of the group) and owns the property outright. The directors believe that this transaction will (including): realize the value of the hotel and town hall properties; enable the profits from the transaction to be realized and reinvested; and increase liquidity and reduce the net asset value. The transaction is in line with the group's strategy to unlock the development surplus of its hotel portfolio and sell non-core assets.