Lenovo Group has sold a Wuhan research and development (R&D) facility to China New Town Development, the computer-maker’s latest disposal of a real estate asset this year amid lackluster earnings in its mobile phone and PC businesses, Caixin reports. Beijing-based Lenovo will sell 100% of its equity interest in Lenovo Mobile Communication Software (Wuhan) Ltd., a subsidiary whose main asset is the R&D facility, for 1.24 billion yuan ($187.78 million), the company said in a Hong Kong Stock Exchange filing on Tuesday.
The company established an industrial base in Wuhan in 2012, where it had planned to build R&D and production facilities. The Wuhan facility is still under construction and is expected to be completed in 2018, according to the announcement. Lenovo did not specify which of the facilities on the industrial base is being sold. The sale will “optimize the Company’s fixed assets and enhance the cash flow position of the company,” according to Lenovo’s announcement.