Kerry Construction (00683) subsidiary establishes joint venture to purchase, hold and develop land in Shanghai

According to Zhitong Finance App, Kerry Construction (00683) announced that on July 30, 2026, a consortium composed of Shengcui (Shanghai) Consulting Management Co., Ltd. (Shengcui, an indirect wholly-owned subsidiary of the Company) and Shanghai Hengjiu Commercial Management Co., Ltd. (Hengjiu) received a transaction confirmation from the Shanghai Administration, confirming that it had successfully bid and obtained land use rights for the project plot at a cost of RMB 2.705 billion (excluding related taxes) (approximately HK$3.138 billion). Therefore, the contracting party will enter into a shareholders' agreement and establish a project company owned by Shengcui and Hengjiu at 95% and 5% ratios, respectively, to own and develop the project plot and manage and operate the completed property.

The consortium will enter into a land concession contract with the Shanghai Bureau to obtain land use rights for the project plot. After the establishment of the project company, the project company will enter into a supplementary agreement with the Shanghai Bureau. According to this, the rights and obligations of the consortium under the land concession contract will be assumed by the project company to hold the project plot, carry out subsequent development, and manage and operate the completed property. The bid deposit paid when submitting the bid will be refunded to the Consortium in accordance with the applicable tender procedures. The contracting parties will provide shareholder capital to the project company in proportion to their respective shares in the project company. According to this benchmark, the Group's maximum investment commitment for the project is expected to be no more than RMB 5,035 billion (approximately HK$5.841 billion, equivalent to 95% of the amount committed) during the entire project period.

The total area of the project plot is about 95,800 square meters. After obtaining relevant planning and construction approval, the project is to be developed into a large-scale commercial and cultural development project located in the Yangsi area of Pudong New Area, Shanghai. The project plot includes plot 1 and plot 2. Plot 1 is located in plot 21Aa-04, Unit Z000602, Yangsi Community, Pudong District, Shanghai, China, covering an area of about 27,000 square meters; Plot 2 is located in plot 21A-01, Unit Z000602, Yangsi Community, Pudong New Area, Shanghai, China, plot E, F plot and underground space C, plot 21Ca-01, and plot D of Jingyi Road underground space, covering an area of about 68,700 square meters (of which the above ground area is about 26,500 square meters).

These transactions are in line with the Group's strategy to establish and expand its investment property portfolio in core cities in mainland China. The Board believes that the project will further enhance the Group's investment property map in Shanghai and bring long-term and recurring revenue to the Group through the development, management and operation of commercial and cultural properties. Furthermore, the Board believes that the contractors' cooperation can combine the parties' expertise in property development, investment and commercial management to facilitate the successful implementation and long-term operation of the project. Therefore, the Board believes that the project can create value for shareholders and support the Group's sustainable growth.