SHUI ON LAND (00272.HK): Disposes of Chongqing Yuzhong District commercial property for RMB 201 million in discloseable transaction
NewTimeSpace News: On 11 September 2026, Shui On Land Limited (stock code: 00272) announced that its seller and the buyer entered into a subscription agreement for the sale and purchase of the property at Levels 1 to 6, No. 6 Ruitian Road, Yuzhong District, Chongqing, China, at a consideration of approximately RMB 201,000,000 (equivalent to approximately HKD 232,682,000).
According to the announcement, the seller is Chongqing Shui On Tiandi Property Development Co., Ltd. and the buyer is Chongqing Shengjugé Real Estate Brokerage Co., Ltd. The property is to be sold as a whole for commercial use with a total gross floor area of 31,286.56 square metres. The buyer agreed to purchase the property on an "as is" basis and subject to existing tenancy agreements, with the seller's rights and obligations as landlord under those agreements to be assumed by the buyer. A deposit of RMB 35,000,000 (approximately HKD 40,517,000) is payable, of which RMB 10,000,000 was paid as a good-faith deposit before the date of the announcement, RMB 15,000,000 is payable on signing of the subscription agreement and RMB 10,000,000 is payable on or before 18 December 2026. The seller shall deliver the property within 120 days from the fulfilment of all conditions precedent.
The announcement stated that the property had a carrying amount of approximately RMB 190,000,000 (approximately HKD 219,948,000) as at 30 June 2026. Based on that carrying amount, no material gain or loss is expected on the disposal, and net cash inflow of approximately RMB 179,000,000 (approximately HKD 207,214,000) is expected after deducting all transaction taxes and costs, which the company intends to apply as general working capital. Upon completion, the property will cease to be consolidated and the group's total revenue will decrease by approximately RMB 14,000,000 (approximately HKD 16,207,000) per annum. As the highest applicable percentage ratio under Rule 14.07 exceeds 5% but is less than 25%, the disposal constitutes a discloseable transaction subject to the reporting and announcement requirements but exempt from the circular and shareholders' approval requirements. The seller is a company 19.8%-held by the group and the property is consolidated in the company's financial statements.
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