CHI MER LAND (00978.HK): Enters Property Lease Agreement for 60 Months, Leasing Office Premises in Shenzhen
NewTimeSpace News: On August 31, 2026, China Merchants Land Limited (stock code: 00978) announced that its indirect wholly-owned subsidiary China Merchants Land (Shenzhen) Co., Ltd. (the tenant) entered into a property lease agreement with Shenzhen Shekou Xintai Real Estate Co., Ltd. (the landlord) to lease premises 3401 and 3402A, Tower of Phase II, New Times Plaza (China Merchants Shekou Plaza), No. 5 Taizi Road, Nanshan District, Shenzhen, with a total gross floor area of approximately 996.96 square meters, for permitted and designated office use.
According to the announcement, the lease term is sixty months, from September 1, 2026 to August 31, 2031, with the tenant entitled to a right of renewal if the landlord intends to continue leasing the premises upon expiry. The tenant will pay the landlord a fixed monthly rent of RMB 219,331.2 (inclusive of VAT) during the term, with the initial rent of RMB 877,324.8 (covering September 1 to December 31, 2026) payable within 10 working days after signing, and subsequent rents payable annually before the 10th day of the first month of each year. The rent was determined through fair negotiation with reference to the quality attributes of the premises and prevailing rent levels of comparable office properties, and will be funded from the Group's internal resources.
Under HKFRS 16, the right-of-use asset value to be recognized by the Group is estimated at RMB 14,244,200.05, being the present value of the total lease payments; the landlord's initial acquisition cost of the premises was RMB 26,814,489.27. The premises will serve as the tenant's principal place of business and office in Shenzhen to support its investment management and operations. The directors considered the lease operationally necessary, and noted that the payment terms are favorable to the Group, with no rental deposit required.
The landlord is a direct wholly-owned subsidiary of China Merchants Shekou Industrial Zone Holdings Co., Ltd. (CMSK), which held approximately 74.35% of the Company's issued share capital as of the date of this announcement and is the controlling shareholder of the Company; the landlord is therefore a connected person of the Company. As the highest applicable percentage ratio of the right-of-use asset value to be recognized exceeds 0.1% but is below 5%, the property lease agreement is subject to the reporting and announcement requirements but exempt from the circular (including independent financial advice) and independent shareholders' approval requirements. Non-executive directors Mr. Zhu Wenkai and Mr. Yu Zhiliang, non-executive director Mr. Li Yao, and executive directors Mr. Huang Jingyuan and Ms. Chen Yan each abstained from voting on the relevant resolutions due to their roles with CMSK or its associates.
The source of this information is the HKEX announcement.
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