EDA Group Signs US$62.8 Million, 130-Month Lease for Major U.S. Warehouse

EDA Group Holdings Limited ( (HK:2505) ) has shared an announcement.

EDA Group Holdings Limited, through its wholly owned subsidiary EDA Cloud International Inc., has entered into a long-term lease for a major warehouse and distribution facility in Palmyra, New Jersey, underscoring its reliance on large logistics infrastructure to support operations. The premises, spanning about 457,159 square feet, will also house office functions to back the group’s broader service offering.

The lease runs for 130 months and is classified as a major transaction under Hong Kong listing rules due to the size of the right-of-use asset, triggering disclosure and shareholder approval requirements that have been satisfied via written consent from a controlling shareholder group. Total base rent over the term is approximately US$62.8 million, with a starting rate of US$0.96 per square foot per month and average annual increases of about 3.5%, indicating a sizeable long-term financial commitment that expands the company’s U.S. logistics footprint and could strengthen its operational capacity in a key market.

The most recent analyst rating on (HK:2505) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on EDA Group Holdings Limited stock, see the HK:2505 Stock Forecast page.

More about EDA Group Holdings Limited

EDA Group Holdings Limited operates through subsidiaries including EDA Cloud International Inc., focusing on logistics-related activities that require large-scale warehouse storage and distribution facilities in the United States. The group uses these premises for warehousing, distribution, and associated office functions to support its international operations and service capabilities.

Average Trading Volume: 72,030

Technical Sentiment Signal: Sell

Current Market Cap: HK$439.6M

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