Macau gaming concessionaire SJM Holdings has reached an agreement to purchase the entire 18th floor of China Merchants Tower at Shun Tak Centre in Hong Kong from a subsidiary of its owner, STDM.
SJM revealed details of the purchase in a filing to the Hong Kong Stock Exchange on Friday, with the transaction costing HK$680 million, to be paid to current owner Shun Tak Centre in two stages. Shun Tak Centre is 30% owned by STDM.
Outlining the reasons behind the purchase, SJM said the property was intended for self-use and consolidation of various existing offices of the group into a single location.
“The board considers that (i) the acquisition is expected to improve operation efficiency by consolidating the group’s various offices into a single location; (ii) the property is a convenient location for travelling to and from Macau; and (iii) the property provides sufficient floor space to accommodate the group’s future expansion,” it said.
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