In 2015, the Group completed a major and connected transaction, namely, the acquisition of the entire issued share capital and shareholder’s loan of the newly acquired subsidiary which directly holds, inter alia, 95 car parking spaces located in Kennedy Town, Hong Kong.
The Hong Kong property market has been going through a period of change as a result of economic and property-related policies. In the second half of 2014, buying sentiment improved and primary transaction volume saw favourable growth. The Long-term Housing Strategy Committee released on 15 December 2014 a comprehensive plan for housing supply in the next ten years to balance housing demand and supply and is conducive to maintaining stability of the Hong Kong property market. The property market prospective in Hong Kong will remain steady with positive outlook.
Under prevailing economic environment, investing in the property market in Hong Kong is a relatively prudent investment option for providing the Group with a steady income stream and for capturing capital appreciation potential given limited supplies per year. The car parking spaces are very limited in Hong Kong and they are relatively easier to lease out and have limited maintenance costs as compare to residential or commercial properties. In addition, car parking spaces will also enjoy capital appreciation potential as residential or commercial properties.