BASIC H NEWLIFE (08360) announced that on April 21, 2026, Gold Wall Renovation and Design Limited (the purchaser, an indirect wholly-owned subsidiary of the company) entered into a provisional sale and purchase agreement with the vendor and the agent for the acquisition of a residential property located on the fourth floor of 728 Shanghai Street, Kowloon, Hong Kong. The consideration is HK$1.83 million, based on a saleable area of approximately 699.66 square feet, equating to about HK$2,615.56 per square foot. The property will be sold to the purchaser on an "as-is" basis. As of the date of this announcement, the property is vacant with no tenancy or lease agreements in place.

According to the provisional agreement, the purchaser is required to pay the consideration as follows: (a) HK$100,000 was paid as an initial deposit upon signing the provisional agreement; (b) HK$83,000 is to be paid as a further deposit on or before April 30, 2026, upon signing the formal agreement for the sale and purchase of the property; and (c) the remaining balance of HK$1.647 million is to be paid on or before June 23, 2026, upon completion. The consideration will be funded from the Group's internal resources.

As disclosed in the company's announcement dated March 23, 2026, the Group has allocated more resources to the strategic development of its BASIC H rental business under the new regulatory environment. The Directors believe the acquisition aligns with the Group's business development strategy and forms part of its plan for the continuous expansion of its BASIC H property portfolio. Following the completion of the acquisition, the company will utilize its established integrated capabilities to renovate the property to the necessary standards for the BASIC H brand. The Group, as the owner, will subsequently lease out the units to generate stable, recurring rental income.

In view of current market conditions, the Board considers the acquisition a timely opportunity to purchase the property at a reasonable price. The acquisition will strengthen the Group's portfolio of owned, leased, and managed properties, thereby consolidating its operational capabilities and enhancing long-term shareholder value through sustainable business growth.