Allied Group Limited and TACI Announce Series of Property Acquisitions in Shenzhen with Aggregate Consideration of Over HK\$768 Million

Key Highlights

• Discloseable Transaction: Allied Group Limited (AGL, HKEX: 373) and its indirect non-wholly owned subsidiary, Tian An China Investments Company Limited (TACI, HKEX: 28), have jointly announced a series of property acquisitions in Shenzhen, Mainland China, with a combined consideration exceeding HK\$768 million.
• Three Separate Acquisitions:
  • Acquisition I: Liwei Investment (an indirect wholly-owned subsidiary of TACI) will acquire Properties I from Minghu Investment for RMB152.8 million (approx. HK\$173.6 million).
  • Acquisition II: Longyun Consultancy (an indirect wholly-owned subsidiary of TACI) will acquire Properties II from Yuncheng Investment for RMB357.26 million (approx. HK\$405.98 million).
  • Acquisition III (Previous): Liwei Investment previously acquired Properties III from Minghu Investment for RMB166.11 million (approx. HK\$188.76 million).
• Aggregate Consideration: The total consideration for all three acquisitions amounts to approximately HK\$768.37 million.
• Valuation Discounts: All acquisitions were completed at significant discounts ranging from 16% to 31% compared to independent professional valuations of the properties.
• Listing Rules Implications: The aggregate transaction size qualifies as a discloseable transaction under Chapter 14 of the HKEX Listing Rules for both TACI and AGL, requiring reporting and announcement but not shareholder approval.

Details of the Acquisitions

Acquisition I – Properties I

• Parties: Minghu Investment (vendor) and Liwei Investment (purchaser)
• Date: 12 March 2026
• Consideration: RMB152,800,000 (approx. HK\$173,636,000)
• Property Details: 30 new industrial/research and development units located on the 4th Floor of Block 1 and floors 5–9 and 11 of Tower A, Block 1, GM Cloud Park Development, Shenzhen. Aggregate gross floor area is approx. 15,700 m².
• Current Status: 3 units for self-use, 20 leased out, 7 vacant.
• Net Rental Income: RMB1,789,000 (2024), RMB762,000 (2025) after VAT.
• Valuation: RMB218,700,000 (approx. HK\$248,523,000).
• Payment Terms: 15% on signing, 65% on individual agreement for units, 20% before title transfer.
• Completion Deadline: Before 31 May 2026.
• Funding: Internal resources of the TACI Group.

Acquisition II – Properties II

• Parties: Yuncheng Investment (vendor) and Longyun Consultancy (purchaser)
• Date: 12 March 2026
• Consideration: RMB357,259,534 (approx. HK\$405,977,000)
• Property Details: 34 residential units at BT Cloud Park, with aggregate GFA of approx. 5,109 m². Properties are under construction with no rental income recorded for 2024 and 2025.
• Valuation: RMB359,000,000 (approx. HK\$407,955,000).
• Payment Terms: RMB16 million within three days of signing, RMB37.59 million on Pre-sale Agreement signing, RMB303.67 million within 120 days of Pre-sale Agreement.
• Completion Deadline: Handover before 12 December 2027.
• Funding: Internal resources of the TACI Group.

Acquisition III – Properties III (Previous Acquisition)

• Parties: Minghu Investment (vendor) and Liwei Investment (purchaser)
• Date: 11 August 2025 (amended 2 February 2026)
• Consideration: RMB166,107,000 (approx. HK\$188,758,000)
• Property Details:
  • 20 new industrial/commercial units (1st, 3rd, and lower ground floors, Block 1, GM Cloud Park Development, 5,700 m²)
  • 20 new industrial/R&D units (4th, 15th–19th Floors, GM Cloud Park Building, 10,600 m²)
  • 20 new industrial/commercial units (1st–3rd Floors, lower ground floor, GM Cloud Park Building, 2,400 m²)
• Current Status: 20 units leased out, 40 vacant.
• Net Rental Income: RMB276,000 (2024), RMB1,817,000 (2025) after VAT.
• Valuation: RMB240,100,000 (approx. HK\$272,841,000).
• Payment Terms: 80% within three days of individual agreement, 20% before title transfer.
• Completion: Transfer completed as of the announcement date.
• Funding: Internal resources of the TACI Group.

Strategic Rationale and Potential Share Price Impact

• Increase in Ownership: Prior to the acquisitions, TACI held an indirect 50% interest in the properties via its indirect 50% equity interest in Minghu Investment and Yuncheng Investment. This series of acquisitions allows TACI to increase its interest and thus its land portfolio in Shenzhen, a high-potential market, which could result in incremental revenue and business growth.
• Acquisition Below Valuation: Each purchase price was at a significant discount to independently appraised values, potentially unlocking hidden value and providing a margin of safety for shareholders.
• Non-Dilutive Financing: All consideration is funded by internal resources, with no dilution to existing shareholders.
• Price Sensitivity: The scale, location, and discounted nature of these acquisitions, in addition to the strategic consolidation of interests in key Shenzhen assets, could be viewed positively by the market and may have a material impact on TACI and AGL’s share prices upon further realization of value.
• Listing Rules Compliance: The transactions are classified as discloseable but do not require shareholder approval, indicating no immediate risk of dilution or control change.

About the Parties

• AGL: Hong Kong-based investment holding company with core activities spanning property development and investment, hospitality, healthcare, property management, and financial services.
• TACI: Listed on HKEX, TACI is involved in property development and investment, property management, and healthcare in Mainland China and Hong Kong.
• Minghu Investment & Yuncheng Investment: Both are Chinese limited liability companies, each 50% held by Junye Company and TACI. Junye is majority owned by Mr. Li Ming.
• Liwei Investment & Longyun Consultancy: Both are indirect wholly-owned subsidiaries of TACI specializing in property investment.

Concluding Note for Investors

These acquisitions represent a strategic consolidation of property interests in Shenzhen, acquired at meaningful discounts to valuation, and funded without shareholder dilution. The enhanced property portfolio positions TACI and, by extension AGL, for potential growth in recurring rental income and asset appreciation, which could positively influence future earnings and share price performance.

Disclaimer

This article is a summary and analysis based on a joint public disclosure by Allied Group Limited and Tian An China Investments Company Limited. It is intended for informational purposes only and does not constitute investment advice. Investors are urged to conduct their own due diligence and consult professional advisers before making any investment decisions. The information herein is believed to be accurate at the time of publication but may be subject to change.

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