Far East Development (00035) plans to sell 50% of the shares in The Ritz-Carlton Hotel in Perth, Australia for 100 million Australian dollars

Zhitong Financial App News, Far East Development (00035) announced that on December 8, 2025, the company's wholly-owned subsidiaries FEC Holdings and FEC Hotel entered into a sales agreement with the buyer The Generation Essentials Group (NYSE: TGE) as sellers. The seller conditionally agreed to sell and the buyer conditionally agreed to buy sales shares (operating company RC Perth Operations Pty Ltd and property company Perth FEC Pty Ltd's 50% issued shares at the date of completion) and sales loans at a total cost of 100 million Australian dollars (equivalent to approximately HK$515 million).

Target groups include operating companies, property companies and RC operating companies. As of the date of this announcement, the operating company was a company incorporated in Australia and a wholly-owned subsidiary of FEC Hotel. The operating company is mainly engaged in investment holding. As of the date of this announcement, the property company was a company incorporated in Australia and a wholly-owned subsidiary of FEC Holdings. Property companies are mainly engaged in property investment. As of the date of this announcement, RC Operating Company is a company incorporated in Australia and a wholly-owned subsidiary of the Company. RC Operating Company is mainly engaged in hotel operations.

According to reports, the hotel is located at the Ritz-Carlton Perth at 1 Barrack St, Perth WA 6000, Australia.

The directors believe that the transaction will (among others) realise the value of the hotel; enable the proceeds of the transaction to be realized and capital recycled; and increase the Group's liquidity and reduce the Group's net balance to liability ratio.

The directors believe that the transaction is consistent with the Group's strategy of unlocking profit from its hotel portfolio and selling non-core assets.