STAR GROUP ASIA (01560.HK): Disposes Hong Kong Central Property for Approximately HK$32.88 Million, Expected Loss of HK$21.12 Million

NewTimeSpace News: Star Group Asia Limited (01560.HK) issued an announcement on 24 July 2026. Manhattan Limited, its indirectly wholly-owned subsidiary as the vendor, entered into a provisional sale and purchase agreement with Mongkok Properties Limited, the purchaser, to dispose of the commercial premises situated on 3/F, CFC Tower, 50 Stanley Street, Central, Hong Kong at a consideration of approximately HK$32.8779 million. The property boasts a total net usable area of roughly 4,100 sq. ft., currently operated as a co-working space by an indirect subsidiary of the Group. The consideration was arrived at after arm’s length negotiations between the vendor and purchaser, with reference to prevailing market values of comparable nearby commercial properties, the Group’s financial position and preliminary valuation from an independent valuer.

Payment schedule: A deposit of approximately HK$1.6439 million was paid upon signing the agreement. The formal sale and purchase agreement shall be executed on or before 6 August 2026, with a further deposit of about HK$1.6439 million payable on or before such date. The balance of roughly HK$29.59 million shall be settled upon completion. Completion is scheduled for 23 October 2026.

The audited carrying value of the property as at 31 December 2025 stood at approximately HK$53 million. Taking into account the consideration and around HK$1 million of expenses in connection with the disposal, the Group expects to record an estimated loss of HK$21.12 million. Net proceeds of roughly HK$31.88 million will be generated, of which approximately HK$31.23 million will be used to repay bank borrowings.

As the applicable percentage ratio exceeds 25% but is below 75%, the disposal constitutes a major transaction subject to shareholders’ approval requirements. The Company has obtained written approval from its controlling shareholder and will not convene a general meeting. The circular will be despatched on or before 30 September 2026.