Mira Road 071 Forms JV To Buy 50% Stake In MPM Plaza

Mira Road (071) said it has agreed with Tai Hung Fai Capital, owned by Tai Hung Fai Enterprise chairman Leung Siu Fai, to form a 50-50 joint venture. The venture will raise its capital contribution to a total of HK$400 million after both sides have already provided HK$130 million in shareholder loans, while limiting bank debt to no more than HK$900 million, with guarantees from both shareholders in proportion to their stakes, according to Ming Pao. The joint venture will use HK$400 million to acquire the shareholding of a company that owns MPM Plaza, the Mong Kok commercial building at 240-244 Portland Street, from receivers led by members of FTI Consulting, giving it an indirect 50% effective interest in the property.