UNI-ASIA GROUP: Second property investment in HK reaches final success milestone

Uni-Asia Group's second property investment in Hong Kong has reached its final success milestone.  Uni-Asia Group executive chairman Michio Tanamoto. NextInsight file photoUni-Asia is looking to receive proceeds from the completion and disposal of a commercial office building at 650 Cheung Sha Wan Road. Uni-Asia holds an effective 13.4% stake in the investment which is carried out with a consortium.

Uni-Asia announced that the project company, First Assets Investment Company, which Uni-Asia has a 19.17% interest through 69.57% owned subsidiary United Wise Capital, has received the Certificate of Completion from the Hong Kong Government for the project on 28 June 2018.

Following the receipt of the Certificate, the Project Company would be able to collect the balance due from the buyers of the project units.

Thereafter, the Project Company would arrange to return the proportionate proceeds to Uni-Asia after deducting the relevant expenses.

United Wise’s original investment amount in the Project Company was around HK$115 million (approximately US$14.8 million).

As at 31 March 2018, the investment in the Project Company was carried at fair value of US$28.8 million on Uni-Asia’s balance sheet.

As Uni-Asia’s interest in United Wise is 69.57%, the owners of the Uni-Asia’s proportionate share (i.e. excluding non-controlling interest) of original investment in the Project Company was around HK$80 million (US$10.4 million).

The owners’ proportionate share in the Project Company’s fair value on Uni-Asia’s balance sheet as at 31 March 2018 was US$20.0 million (the fair value approximates the realisable value as at 31 March 2018).

In its third project in HK, Uni-Asia invested US$6.4 million in a new commercial office building project, which will be completed by 2019.