CHI MER LAND (00978): Joint Venture Wins Bid for Hong Kong Land

CHI MER LAND (00978) announced that on August 24, 2026, its joint venture successfully won the bid awarded by the Hong Kong Special Administrative Region Government, based on the proposal submitted on July 3, 2026, with a land price of HKD 1.03 billion. The joint venture is a single-purpose entity jointly established by our group, China Overseas, CHINA RES LAND (Overseas), China Travel Investment, JD.com, and SINO LAND, with each holding shares of 17%, 17%, 17%, 15%, 17%, and 17%, respectively. Its purpose is to submit the bid and to acquire and develop the land in accordance with the details and sale conditions contained in the bid upon securing the successful bid. The capital contributions of the joint venture partners in this joint venture were determined through negotiations based on fair trading principles, considering factors such as the land price, development costs of the land, bank guarantees, performance guarantees, and the shareholding ratios of the partners in the joint venture. The land price was determined by the partners after considering multiple factors, including the development prospects and potential of the land, as well as the overall outlook of the Hong Kong property market. The total capital contribution from the partners is expected to be approximately HKD 16.8 billion. Our group expects to invest about HKD 2.856 billion in accordance with its 17% equity stake in the joint venture. The land includes three residential/commercial sites located at HSK 18, HSK 20, and HSK 21, as well as an enterprise and technology park site located at HSK 19. The total area of the land is approximately 36,202 square meters, with a total permitted gross floor area of about 220,000 square meters. The land will be developed into a comprehensive development project that includes residential, non-residential, and enterprise and technology park components. It is expected that this development project will enhance our group's property portfolio.