Allied Group & TACI Announce Major Property Acquisitions in Shenzhen Totalling Over RMB676 Million

Key Points

• Three major property acquisition agreements signed by subsidiaries of Tian An China Investments Company Limited (TACI), a non-wholly owned subsidiary of Allied Group Limited (AGL).
• Total consideration for all acquisitions: RMB676,166,534 (approx. HK\$768,371,000).
• Properties comprise a mix of new industrial, R&D, and residential units in prime Shenzhen locations.
• All acquisitions valued at discounts to independent professional valuations.
• Transactions classified as discloseable under HKEX Listing Rules, subject to reporting and announcement, but exempt from shareholder approvals and circulars.

Transaction Details

Acquisition of Properties I

On March 12, 2026, Liwei Investment (an indirect wholly-owned subsidiary of TACI) entered an agreement with Minghu Investment to acquire 30 new industries/research and development units located on the 4th and various floors of Block 1, GM Cloud Park Development, Shenzhen. The total gross floor area is approximately 15,700 m². The consideration for this transaction is RMB152,800,000 (approx. HK\$173,636,000), to be paid in tranches: 15% within three days of signing, 65% upon signing individual agreements for units, and the remaining 20% prior to title transfer. This acquisition is at a notable discount to the independently-assessed value of RMB218,700,000 (approx. HK\$248,523,000).

As of the announcement, 3 units are self-used, 20 leased, and 7 vacant. Net rental income for 2024 and 2025 was RMB1,789,000 and RMB762,000 respectively, after VAT.

Acquisition of Properties II

On the same day, Longyun Consultancy (another indirect wholly-owned subsidiary of TACI) agreed to acquire 34 residential units in BT Cloud Park, Shenzhen from Yuncheng Investment for RMB357,259,534 (approx. HK\$405,977,000). The properties have a total gross floor area of about 5,109 m² and are still under construction, with handover scheduled before December 12, 2027. Payment is structured as follows: RMB16 million within three days, RMB37.59 million upon signing the pre-sale agreement (within 14 working days), and the balance of RMB303.67 million within 120 days of the pre-sale agreement. The acquisition is at a slight discount to the independent valuation of RMB359 million (approx. HK\$407,955,000).

Previous Acquisition of Properties III

Prior to the above, on August 11, 2025 (amended February 2, 2026), Liwei Investment acquired 60 units in GM Cloud Park from Minghu Investment, totalling an aggregate gross area of about 18,700 m² for RMB166,107,000 (approx. HK\$188,758,000). The valuation of these properties was RMB240,100,000 (approx. HK\$272,841,000). Payment was 80% upon signing individual agreements, and 20% prior to title transfer. As of announcement, 20 units are leased and 40 vacant. Net rental income for 2024 and 2025 was RMB276,000 and RMB1,817,000, respectively.

Strategic Rationale & Potential Impact

• Significant Increase in TACI Group’s Land and Property Portfolio: TACI Group, through these acquisitions, increases its stake in strategically-located properties in Shenzhen, transitioning from a 50% indirect interest to full ownership in the acquired units.
• Acquisition Prices Below Independent Valuations: All three acquisitions were made at prices below the professional valuations, reflecting potential upside and value creation.
• Revenue and Growth Potential: The properties consist of a mix of leased, self-used, vacant, and under-development units, providing both immediate rental income and future capital appreciation opportunities.
• Funding: All acquisitions will be funded by internal resources, indicating a strong balance sheet and prudent financial management.
• No Immediate Shareholder Approval Required: As the relevant percentage ratios for these transactions (both individually and in aggregate) exceed 5% but are below 25%, they are classified as discloseable transactions under Chapter 14 of the Listing Rules, requiring only announcement and reporting (not shareholder approval or circular).

Corporate Structure & Parties Involved

TACI is a Hong Kong-listed company focused on property development, investment, and management in Mainland China and Hong Kong, as well as healthcare-related business. Liwei Investment and Longyun Consultancy are indirect wholly-owned subsidiaries of TACI. Minghu Investment and Yuncheng Investment (the counterparties) are each 50%-owned by TACI and Shenzhen Junye Cloud Park City-Industry Investment Development Co., Ltd., whose ultimate beneficial owners are Mr. Li Ming (99.83%) and Mr. Yang Yi (0.17%). AGL is the ultimate parent, listed in Hong Kong, with a diversified portfolio spanning property, hospitality, healthcare, finance, and investments.

Key Considerations for Shareholders

• Potential Share Price Impact: The scale, discount to valuation, and strategic nature of these acquisitions may positively affect investor sentiment and share value for both AGL and TACI, as they signal confidence in the Shenzhen property market and strengthen the group’s asset base.
• Ongoing Revenue Stream: The rental and future sales potential of these properties could provide a stable and growing income stream.
• Execution & Delivery Risk: Especially for Properties II, currently under construction, there remains timing and completion risk.
• Independence & Governance: The transactions are conducted at arm’s length and with independent valuations, and all counterparties (except for disclosed shareholdings) are independent third parties.
• No Dilution/Shareholder Approval: As no new shares are issued and no shareholder approval is required, there is no dilution risk. However, investors should monitor future announcements for any developments or changes.

Conclusion

These transactions represent a significant expansion of AGL and TACI’s property interests in Shenzhen, at attractive valuations. The deals are structured to maximize flexibility and minimize risk, with the potential to enhance earnings and shareholder value over the medium term. Investors should consider the positive implications for the group’s income and asset base, balanced against standard execution risks for property developments.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult professional advisers before making investment decisions. The information above is based on a company joint announcement dated March 12, 2026, and may be subject to change or updates.

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