Capturing Expansion Opportunities in Hong Kong’s Elderly Care Industry
HONG KONG — As a leading operator of care and attention homes for the elderly in Hong Kong, Pine Care Group Limited (“Pine Care Group” or the “Company”, together with its subsidiaries, the “Group”, stock code: 1989) has announced that One Affinity Limited, an indirect wholly-owned subsidiary of the Company, has entered into a sale and purchase agreement with Prominent Investment S.A., a wholly-owned subsidiary of Sun Hung Kai Properties Limited (Stock code: 16), to acquire the entire issued capital of Lorient Holdings Ltd. which owns a property located on Nam Cheong Street of Kowloon at a consideration of HK$380 million.
The property is situated in the Sham Shui Po district in Kowloon, which comprises the front portion of Shop G1b and portion of Shop G2 on G/F, portion of Shop No. U2B on the Upper Ground Floor (including the space beneath the staircase and landing on the upper ground floor) together with the staircase leading to the G/F, whole 1/F to 3/F, portions on 4/F, Maintown Plaza, No. 223-237, Nam Cheong Street, Kowloon, Hong Kong. The total gross area of the Property is approximately 43,400 square feet. The market value of the property as appraised by an independent property valuer was HK$382 million.
Part of the consideration for the acquisition derives from the proceeds of the Company’s listing. According to the prospectus of the Company, the said part of proceeds was intended to be used to acquire a property on the Hong Kong Island to establish a care and attention home. The Group has not identified a suitable property on the Hong Kong Island and therefore has not utilsed any of the relevant part of proceeds. However, having considered the location and the total gross area of the said property, the Group is of the view that the acquisition of the property situated on Nam Cheong Street at Sham Shui Po district in Kowloon provides an attractive opportunity for the Group to expand its network of care and attention homes across Hong Kong. It will also enable the Group to deploy its financial resources more efficiently.
Lorient Holdings Ltd., the target company, is principally engaged in the property investment, and it is the sole legal and beneficial owner of the said property. Upon completion of the acquisition, it will become an indirectly wholly-owned subsidiary of Pine Care Group, and its financial results will be consolidated in the financial statements of Pine Care Group.
Mr. Yim Ting Kwok, Chairman and Executive Director of Pine Care Group Limited, said, “We are always looking for new opportunities to expand the Group’s network of care and attention homes, leveraging on our strong brand, technical expertise, and decades of experience. The said property on Nam Cheong Street satisfies our selection criteria for choosing a new site. In particular, the layout of the property allows us to use the floor area very efficiently. Together with its size and convenient location, which is within walking distance from the MTR station, we believe that the acquisition of the Property is a great opportunity for us. We look forward to the completion of the establishment of this new care and attention home and we will continue to serve Hong Kong elderly with our guiding principle “respecting the elderly residents like our families”, and put the best interests of the elderly residents above all other matters.”