K2 F&B (02108) plans to sell its Singapore property for around 28 million Singapore dollars.

K2 F&B (02108) announced that on February 6, 2026, the seller CK Chu Holdings Pte Ltd (an indirect wholly-owned subsidiary of the company) entered into a sales agreement with the buyer Aik Chuan Construction Pte Ltd. The seller conditionally agreed to sell, and the buyer conditionally agreed to purchase, the property (including nine units located in Singapore's Peoples Park Centre) for a price of SGD 28 million (equivalent to approximately HKD 172 million), excluding applicable goods and services tax. Following the signing of the sales agreement on February 6, 2026, the buyer and seller simultaneously entered into a lease agreement. The buyer (as the landlord) agreed to lease the property to the seller (as the tenant) upon completion, at a monthly rent of SGD 75,000 (equivalent to approximately HKD 460,000) (excluding applicable goods and services tax to be borne by the seller). The initial term is for three years from the completion date, with the seller having the option to renew for a further three years at the prevailing market rental rate, provided that the rental increase does not exceed 10% of the initial term rent. The group acquired the property in 2020 for approximately SGD 22.2 million (equivalent to approximately HKD 136 million), primarily funded through bank borrowings. Currently, the property is operated and managed by the group as an air-conditioned food court under its shop management and leasing business, with several units rented out to third parties. Considering the current property market conditions and the potential benefits from the sale, the board believes that the sale provides an opportunity to realize the value of the property investment. The proceeds from the sale will be used to repay the group's bank loans, reducing its debt and financing costs, as well as alleviating its working capital pressure.