HKCTS to sell Shanghai Metropark Hotel Apartments for 582 million
Ruskin Overseas Limited, a subsidiary of Hong Kong China Travel Service, is making a 100% listing transfer of their worth 582.15 million RMB.
The Beijing Stock Exchange has revealed that Ruskin Overseas Limited, a subsidiary of Hong Kong China Travel Service, is making a 100% listing transfer of their worth 582.15 million RMB. This move would help HKCTS improve its hotel asset portfolio.
HKCTS’s assets will appreciate in value
Ruskin Overseas is a small state held enterprise established in 1997. In August 2014 the company had a reported revenue of 27.73 million RMB with a net profit of 9.13 million RMB.
A low return deal
Ruskin Overseas now has full ownership of Shanghai Metropark Hotels Service Apartments so HKCTS can leverage the Metropark Hotel’s premium hotel brand. Shanghai Metropark Hotel Service Apartment’s asset returns are comparatively low so if the listing transfer is finalized it will not only help HKCTS to improve its asset portfolio and increase their liquid assets and capital but the funds raised in the transfer can also be used for the group’s general operational purpose or used to invest in other higher return projects.(Translation by David)