UOL Group Limited Announces Sale of Pan Pacific Tianjin Hotel for RMB238 Million

Summary of the Transaction

• Seller: Tianjin UOL Xiwang Real Estate Development Co., Ltd., a wholly-owned subsidiary of UOL Group Limited.
• Buyer: Mr Jiang Yang.
• Assets Sold: The transaction covers two main assets:
  • The 319-room Pan Pacific Tianjin hotel located at No. 1 Zhang Zi Zhong Road, Hongqiao District, Tianjin, China, including the land use rights associated with the hotel.
  • Basement Unit 102, Building 1/2, Hai He Hua Ding Building, adjacent to Jie Fang Square, Da Hu Tong, Hongqiao District, Tianjin, including corresponding land use rights.
• Total Consideration: RMB238,000,000, to be paid entirely in cash.
• Deposit Paid: RMB23,800,000 upon signing of the Asset Purchase Agreement.
• Balance Payment: RMB214,200,000 to be paid on or about 1 April 2026, subject to satisfaction or waiver of conditions precedent, or on a date mutually agreed by both parties.

Valuation Details

An independent valuation was commissioned for year-end financial reporting purposes, with the market value of the property in its existing state assessed at RMB238,000,000 as at 31 December 2025. The valuation used both market and income approach methods, supporting the agreed purchase price as being fair and reflective of current market conditions.

Strategic Rationale

The sale is part of UOL Group’s broader strategy to reconstitute its overall property portfolio. By divesting the Pan Pacific Tianjin and associated basement property, the Group may be seeking to optimize its asset mix or redeploy capital into higher-yield opportunities. This strategic shift could have implications on future earnings and the Group’s investment direction.

Shareholder and Market Impact

• Classification: Under the Singapore Exchange Listing Manual, this transaction is classified as a “non-discloseable transaction,” meaning it does not meet the thresholds requiring detailed disclosure. However, investors should note the asset disposal and its implications.
• Price Sensitivity: The sale amount matches the independently appraised value, suggesting no immediate gain or loss from the transaction. However, the reconstitution of the property portfolio could reflect an evolving corporate strategy that may impact future profitability, capital allocation, and asset returns.
• Director/Shareholder Interest: No directors or controlling shareholders of UOL Group have any direct or indirect interest in the transaction, indicating no conflict of interest.

Potential Implications for UOL Shareholders

This transaction signals a significant move in UOL Group’s property portfolio management. While the sale price aligns with the independent valuation and is not expected to result in an immediate gain or loss, the redeployment of capital and change in asset mix could affect long-term earnings and strategic positioning. Investors should monitor subsequent disclosures regarding how proceeds from the sale will be used and whether further asset disposals or acquisitions are anticipated.

Key Dates and Next Steps

• Agreement Signed: 30 January 2026
• Deposit Paid: Upon agreement signing
• Balance Payment Expected: On or about 1 April 2026, subject to conditions precedent

Disclaimer

This article is intended for informational purposes only. It does not constitute investment advice, nor should it be construed as a recommendation to buy, sell, or hold any securities of UOL Group Limited or any other entity. Shareholders and investors are advised to consult with their financial advisor or conduct their own due diligence before making investment decisions.

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