Kerry Properties—controlled by Malaysia’s richest person Robert Kuok—has agreed to sell two of its warehouses in Hong Kong to China Resources Logistics, a unit of state-owned China Resources Group, for HK$4.62 billion ($588 million), according to a filing to the Hong Kong stock exchange on Monday.
Kerry Properties said in the filing that it plans to sell its Chai Wan warehouse for HK$2.29 billion and its Sha Tin warehouse for HK$2.33 billion. The deal is expected to be completed by the end of June. Kerry Properties plans to use the funds from the sale to strengthen its balance sheet and operations.
Kerry Properties acquired the two warehouses from Kerry Logistics Network (KLN) for HK$3.6 billion three years ago based on the redevelopment potential of the buildings. Kerry Properties and KLN are both controlled by the Kuok Group.
Kerry Properties is run by Robert Kuok’s youngest son, Kuok Khoon Hua, who is currently holding the positions of CEO and chairman. The patriarch founded the Kuok Group as a commodities trader in Malaysia in 1949. Today, his business empire includes interests in hotels, real estate, shipping and commodities. The elder Kuok has a net worth of $11 billion, according to the World’s Real-Time Billionaires list.