CHI MER LAND (00978.HK): JV bid of HKD 1.03 billion for Hung Shui Kiu land accepted, constituting discloseable transaction under alternative size test
NewTimeSpace News: On 24 August 2026, China Merchants Land Limited (stock code: 00978) announced that JV 1 has successfully been awarded the tender for the sites in the Hung Shui Kiu/Ha Tsuen New Development Area by the Government of the Hong Kong Special Administrative Region, pursuant to the tender submitted on 3 July 2026, at a land premium of HKD 1.03 billion.
The announcement stated that the JVs are single-purpose entities jointly established by the Group, China Overseas, China Resources Land (Overseas), CTS Travel Investment, JD.com and Sino Land with equity interests of 17%, 17%, 17%, 15%, 17% and 17% respectively, for the purpose of submitting the tender and, upon award, acquiring and developing the sites in accordance with the details and conditions of sale set out in the tender. The total capital commitments of the partners are expected to be approximately HKD 16.8 billion, of which the Group is expected to contribute approximately HKD 2.856 billion, representing its 17% equity interest. Each of JV 1 and JV 2 has a total share capital of HKD 100, of which the Group subscribed HKD 17 each; a tender deposit of HKD 50 million in aggregate was paid to the Government upon submission of the tender, of which the Group contributed HKD 8.5 million.
Under the Listing Rules, as each of the applicable percentage ratios in respect of the Group's subscription for the share capital of the JVs and the initial deposit is below 5% individually or in aggregate, such contributions do not constitute a discloseable transaction for the Company. As the consideration ratio arising from the Group's estimated total capital commitments in the JVs for the acquisition and development of the sites produced anomalous results, the Company applied to the Stock Exchange, which agreed to exercise its discretion under Rule 14.20 of the Listing Rules to adopt an alternative size test. Under the alternative size test, as one or more of the applicable percentage ratios in respect of the Group's estimated total capital commitments in the JVs exceeds 5% but is below 25%, the establishment of the JVs and the transactions contemplated thereunder constitute a discloseable transaction for the Company, subject to the notification and announcement requirements under Chapter 14 of the Listing Rules.
The sites comprise three residential/commercial sites at HSK 18, HSK 20 and HSK 21 and one Enterprise and Technology Park site at HSK 19, with a total area of approximately 36,202 square meters and a permitted gross floor area of approximately 220,000 square meters. Upon completion, HSK 18, HSK 20 and HSK 21 are expected to provide approximately 156,072 square meters of residential gross floor area and approximately 13,006 square meters of commercial gross floor area, while the Enterprise and Technology Park site at HSK 19 has a proposed gross floor area of not less than 30,570 square meters, intended to be developed into a world-class smart modern logistics center with a JD.com Group company as the anchor tenant.
NewTimeSpace Disclaimer: All content herein is the original work of NewTimeSpace. Any reproduction, reprinting, or use of this content in any other manner must clearly indicate the source as "NewTimeSpace". NewTimeSpace and its authorized third-party information providers strive to ensure the accuracy and reliability of the data, but do not guarantee the absolute correctness thereof. This content is for reference only and does not constitute any investment advice. All transaction risks shall be borne by the user.
