Hong Kong-listed Jinhui, via its subsidiary, purchased the property at a price of HKD30.99m ($3.96m) from a wholly-owned subsidiary of Silk Road Logistics Holdings, an investment holding company.
Upon completion of the purchase, the Jinhui subsidiary will lease the office unit to the Silk Road Logistics subsidiary for 12 months to reap a total rent of HKD950,544.
“The acquisition of the property represents a small allocation of capital into revenue generating assets that are non-correlated to our core shipping business which is often cyclical in nature,” Jinhui said.
“The property is expected to generate steady and recurring stream of income for the group. Potential resale opportunity with capital appreciation over time in the prime commercial areas of Hong Kong is also expected,” it added.
Read more: Jinhui sells another supramax for $9m
In August, Jinhui disposed of a 2003-built, 52,961-dwt supramax for $8.7m to make a net book gain of approximately $764,400.
Jinhui currently owns two modern post-panamaxes and 18 modern grabs fitted supramaxes with a total carrying capacity of around 1.19 dwt.
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