ACESO LIFE SCI (00474) has entered into amendments and restatements of the 2018 loan agreements with various lenders and agents.

ACESO LIFE SCI(00474) announced that the group has entered into an amended and restated agreement (the 2025 Loan Agreement) with various lenders and agents on September 16, 2025. The lenders have agreed to provide a loan of approximately 87.3 million (new loan arrangement) for a period of 3 years, with an option to extend for 1 year, subject to certain conditions being met. The new financing arrangement will be secured by pledging shares of the company entity holding the commercial property located at 55 Mark Lane, London, EC3R 7NE, United Kingdom (UK property) indirectly and by providing a mortgage on the UK property. The new financing arrangement will be used to provide refinancing arrangements for the 2018 Loan Agreement and to fund additional capital expenditures related to the UK property. Upon the implementation of the 2025 Loan Agreement, the company plans to undertake major renovations on the UK property. An estimated capital expenditure of approximately 17 million is expected to be invested in upgrading the main facilities and amenities to enhance tenant experience and overall attractiveness, thereby increasing the value of the UK property. The UK property is situated in the traditional commercial district of central London. The building is currently mainly leased by well-known insurance companies and financial institutions, with an overall occupancy rate of around 84%. The company has a dedicated team responsible for the management of the UK property, including executive directors, legal, finance, and secretarial representatives. The UK property market has been volatile over the past three to four years. Market uncertainties have made refinancing difficult and hindered new tenant recruitment. However, in 2025, research reports from several renowned consulting firms indicate signs of a recovery in the London office market. As the UK property ages, signs of wear and tear have become evident. The company is determined to devise appropriate business strategies for the property. In particular, management is actively exploring various ways to enhance the rental value of the building and seeking financing solutions to support the asset appreciation plan, including but not limited to energy efficiency and sustainability upgrades, lobby renovations, elevator upgrades, commuting facilities enhancement, and building management system updates. Based on the business plan and negotiations with tenants, the majority of tenants have expressed willingness to renew their leases and extend their tenancy. The strategy focuses on increasing energy efficiency and aesthetics of the building, while potentially reducing service charges to achieve rental growth through lease renewals. As of the date of this announcement, through active negotiation, the company has successfully completed a lease renewal at a higher rent for a space representing 7% of the net leasable area of the building. With the market recovery, the company will engage in deeper discussions with tenants, service providers, and contractors to optimize the scope of proactive upgrades, discuss expansion and renovation plans for tenant areas. Over the next 2 to 3 years, strict budget management and review of relevant projects will be necessary, with the expectation that the assets will stabilize thereafter, and sustainable operations will be achieved through long-term leasing.