STAR GROUP ASIA (01560) plans to acquire Global Student Living Group to expand its student dormitory business map.

STAR GROUP ASIA (01560) announced that on January 27, 2026 (after trading hours), one of its subsidiaries ("Potential Buyer") entered into a Memorandum of Understanding ("MOU") with Ms. Zeng Huili, Mr. Liang Jianbang, and Mr. Chen Desheng ("Potential Sellers") regarding the proposed acquisition of Global Student Living Group Holding Limited and its subsidiaries ("Target Company") in whole or in part ("Proposed Acquisition"). Global Student Living Group Holding Limited is a Hong Kong-based accommodation and property management service provider specializing in student dormitories and shared apartment services. The Target Company was established in 2012 and holds licenses issued by the Estate Agents Authority and the Property Management Services Authority of Hong Kong. The Target Company is dedicated to providing safe, affordable, and well-managed accommodation for local and overseas students, young professionals, and workers in Hong Kong, while offering professional one-stop rental and property management services for property owners. The Target Company operates a diversified portfolio of residential units in prime locations in Hong Kong's main districts. Its services include room leasing, tenant recruitment, tenancy management, property management, maintenance coordination, and customer support, enabling property owners to achieve stable occupancy rates and optimize rental returns with minimal operational burdens. The Group has been committed to developing the property at 107-109 Wo Yi Hop Road into a hotel/student dormitory. Several significant milestones have been reached, including formal approval from the Town Planning Board under Section 16 of the Town Planning Ordinance to rezone the land for hotel use, as well as preliminary and conditional approval from the Education Bureau to include the future project in the "Urban Student Dormitory Scheme." The project is now ready to enter the development stage, and the Group is currently in negotiations with potential investors to collaborate on the development of the project, which is expected to become Hong Kong's first and largest dedicated student dormitory, providing approximately 988 rooms. Upon completion, the project is expected to significantly increase the supply of quality student accommodation and help meet the growing demand for dormitories from local, mainland Chinese, and overseas students coming to Hong Kong for further studies. This development aligns with the Hong Kong Special Administrative Region Government's policy objective of promoting Hong Kong as an international education hub and an education hub. The Proposed Acquisition aligns with the Group's strategic objectives of expanding into the student dormitory and accommodation market, covering both development and operational aspects. The Target Company is a well-known accommodation operator in Hong Kong with extensive experience in student housing and shared apartment operations, including tenant recruitment, tenancy management, property operations, and daily dormitory management. Through the acquisition, the Group will immediately gain access to an experienced operational platform, mature management systems, and industry expertise, thereby reducing execution risks and shortening the preparation period for the Group's student dormitory projects. In addition, the strong relationships established by the Target Company with universities and student communities are expected to enhance the market promotion and leasing capabilities of the Kwun Tong project, supporting stable and diversified tenant demand. The acquisition also enables the Group to establish an internal student dormitory operations team, providing a scalable platform for future dormitory projects and asset-light expansion. The expected acquisition is anticipated to generate direct synergies with the Group's Kwun Tong student dormitory development project. By integrating the Target Company's operational expertise in the early stages of development, the Group can optimize dormitory layout design, room combinations, pricing strategies, and operational processes to better align with market demand. This is expected to increase occupancy rates, operational efficiency, and long-term recurring income post-operational commencement. Considering the above reasons, the Board believes that the Proposed Acquisition (if completed) will allow the Group to broaden its business scope and achieve sustainable growth within the industry by creating synergies and integrating Group resources. This will enhance the Group's recurring income base, improve asset utilization, and create long-term shareholder value. Therefore, the Board believes that the Proposed Acquisition is in the best interests of the Company and its shareholders.