Shui On Land Restructures Project Investment Via New Onshore Joint Venture

The latest update is out from Shui On Land ( (HK:0272) ).

Shui On Land has entered into a cooperation agreement with several partners, including Manulife and Dajia-related entities, to establish a joint venture that will acquire equity in, and hold, certain project assets through an existing project company. Following completion, the joint venture will own 99% of the project company, while Shui On Land will hold 40.5% of the joint venture’s partnership interests, with no change to its existing accounting treatment and no consolidation of the joint venture or project company into the group’s financial statements. The transaction is classified as a connected transaction under Hong Kong listing rules due to ties with CLT, but has been approved by the board on normal commercial terms and will only be subject to reporting and announcement requirements. Strategically, the move converts Shui On Land’s offshore investment in the project assets into an onshore structure, opening the door for new investors, enabling onshore bank financing that better matches RMB-denominated income, and lowering financing costs while having no expected material impact on current profits or losses.

The most recent analyst rating on (HK:0272) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Shui On Land stock, see the HK:0272 Stock Forecast page.

More about Shui On Land

Shui On Land is a Hong Kong-listed property developer and investment group that holds and manages project companies and real estate assets, including through offshore and onshore structures. The group deploys joint ventures and partnership vehicles to attract institutional investors and arrange bank financing for its mainland China project assets.

Average Trading Volume: 7,438,770

Technical Sentiment Signal: Sell

Current Market Cap: HK$5.45B

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