Debt-saddled Lai Sun Development sells stake in AIA’s Hong Kong headquarters
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Lai Sun Development, a Hong Kong property firm, has sold its equity stake in the AIA Central skyscraper for HK$1.42 billion (US$180 million) to boost its liquidity. The sale comes after the developer disposed of its interest in an industrial building in the city. The unit, Peakflow Profits, sold its shareholdings in Bayshore Development, the owner of AIA Central, to Grand Design Development, a subsidiary of insurance giant AIA Group. AIA Group will hold the remaining equity stake in Bayshore Development. The proceeds of the sale will be used to repay bank loans and for general working capital. Lai Sun Development had total liabilities of over HK$34.69 billion for the six months ended January 31. Each of the Lai Sun units is expected to record a loss of about HK$154.6 million on the disposal. The sale is seen as a prudent move to enhance the cash flow and financial position of Lai Sun Development.