Shui On Land, controlled by Hong Kong billionaire Vincent Lo, is selling hotel assets in Shanghai for as much as $256 million as it seeks to cut debt and focus on property development.
Shui On agreed to sell The HUB Hotel, set for completion in 2015, for $157 million to Hong Kong-based property firm Great Eagle Holdings. Great Eagle is also buying Shui On's stake in an investment company that part-owns Langham Xintiandi Hotel for as much as $97.6 million.
Shui On has been selling assets as it considers a spinoff of its Xintiandi unit, a retail and office complex in Shanghai, while attempting to reduce its leverage. The transactions, if completed, will bring down the company’s net gearing, which was 64 percent as of June 30, by 5 percent.