Hysan Development Company Limited (Hysan Dev) disclosed that its wholly owned unit, Kwong Wan Realty, signed a tenancy agreement on 24 April 2026 with Executive Director and Chief Operating Officer Mr Lui Kon Wai for a 1,503-sq-ft residential unit at Bamboo Grove, Mid-Levels. The fixed term runs five years and six months from 25 April 2026 to 24 October 2031.

Key lease terms • Rent: HK$76,800 per month (inclusive of management fees and rates) for the first 30 months. From month 31 to month 66, rent will be adjusted in line with movements in the Rating and Valuation Department’s Class D private domestic rental index, subject to a floor at the prevailing rent. • Tenant benefits: use of one car-parking space free of charge during the lease. • Purpose: private residence for the tenant and family.

Purchase option • Exercise window: 24 April 2031 to 25 May 2031. • Purchase price: HK$40.00 million, aligned with an independent valuation as of 31 December 2025. • Payment structure: 10% deposit within 14 days of exercise; 90% on or before completion, which must occur before lease expiry. All rent paid will be rebated against the outstanding balance on completion. • Additional incentive: a deferred bonus of HK$12.00 million, payable by Hysan Dev solely toward the purchase price, contingent on Mr Lui’s continuous employment for five years from 25 April 2026 and achievement of pre-set performance targets. • Conditions precedent include full compliance with tenancy terms, no rental arrears, continued full-time employment, and achievement of performance targets, unless waived by the landlord.

Financial context • Net rental income from the unit was HK$0.29 million in 2024 and HK$0.43 million in 2025. • Book value of the unit stood at HK$26.71 million at 31 December 2025. • Any gain or loss on disposal will equal the HK$40.00 million purchase price minus the carrying value at completion; proceeds are earmarked for general working capital.

Regulatory treatment Because the tenant is a connected person, the lease is a continuing connected transaction. With all percentage ratios below 0.1%, it is exempt from announcement, reporting and independent shareholders’ approval. The purchase option is classified as if already exercised; applicable ratios exceed 0.1% but remain below 5%, requiring announcement and reporting only.

Board and adviser views Independent Financial Adviser Ballas Capital concluded the lease and purchase option are on normal commercial terms and in shareholders’ interests, reflecting market-aligned rent and valuation, as well as forming part of a long-term retention incentive. The board concurred; Mr Lui abstained from voting.

Bamboo Grove background The Mid-Levels development comprises 345 units and 436 parking spaces. Hysan Dev began phased sales of two blocks in August 2025, including the subject unit.