Kerry Properties and their affiliate Shangri-La Asia Ltd have agreed to invest in a 670 mn hkd hotel project in Hong Kong.
According to a joint statement the companies will hold 30 % stakes each in the venture project while their controlling entity, Kerry Holdings will own the remaining 40 %.
The hope is that the project can enhance shareholders’ value for Kerry Properties and Shangri-La shareholders respectively by providing recurrent income’ for the companies.
The property, which is located in Queen’s Road West in Hong Kong, has gross floor area of 125,000 square feet and funding for the project will come from internal resources and bank borrowings. Kerry Holdings currently holds a 49.7 % stake in Shangri-La and owns 61.36 % of Kerry Properties.