CSI PROPERTIES (00497) announced that on May 15, 2026, its indirect wholly-owned subsidiary, Trade Sector Limited (the Seller), entered into a sale and purchase agreement with buyers AIP Aggregator and AIP Amber. The Seller agreed to sell a 49.9% equity interest in the issued share capital of the target company, Action Soar Investments Limited, and conditionally agreed to transfer the corresponding shareholder loan to the buyers. The total consideration for the transaction is AUD 29.94 million.

Upon completion, the Seller's stake in the target company will decrease from 56.06% to 6.16%. The Group expects to receive net proceeds of approximately AUD 29.933 million from the disposal. The Group currently intends to use these proceeds for general working capital purposes.

The Group's interest in the target company, which indirectly holds properties in Brisbane, Australia (including office buildings completed in 1976 and 1982), represents a non-core investment outside its primary market. The Board has been continuously monitoring the performance of this investment and the conditions of the Australian commercial property market.

The Board notes that the Australian office market is currently facing challenges. It also recognizes that rising interest rates, persistent inflationary pressures, and global economic uncertainties continue to weigh on the outlook for the Australian commercial property sector. Consequently, the Board holds a cautious view on the short-to-medium term prospects of this market and the investment value of the target company, particularly considering the characteristics and positioning of the properties and the competitive dynamics of Brisbane's office market.

Although the disposal is expected to be completed at a price below the Group's historical net investment cost, resulting in an anticipated loss, the Board believes the sale presents a timely opportunity to realize the investment in the target company and unlock value under current market conditions, thereby mitigating the risk of further value erosion.

The net proceeds from the disposal will strengthen the Group's cash position and provide additional financial flexibility to allocate funds towards general working capital or other potential investment and business opportunities.