CSI Properties to Divest 49.9% Stake in Australian Office Asset for AU$29.94 Million

Bulletin Express
05/15

CSI Properties Limited (CSI Properties) has agreed to sell a 49.9% stake in its British Virgin Islands–incorporated associate, Action Soar Investments Limited (the Target Company), to Singapore-based investors AIP SFII Aggregator Pte. Ltd. and AIP Amber I Holdco Pte. Ltd. (together, the Purchasers).

The transaction, signed on 15 May 2026 after market close, covers: • Sale of 4,990 ordinary shares—49.9% of the Target Company’s issued capital; • Assignment of shareholder loans totalling AU$39.01 million; • Aggregate cash consideration: AU$29.94 million (approximately HK$170.66 million), payable at completion and subject to downward adjustment for any distributions made after 31 December 2025.

Post-transaction, CSI Properties’ indirect shareholding in the Target Company will drop from 56.06% to 6.16%. The Target Company will remain unconsolidated in group accounts both before and after completion.

Financial impact and proceeds • Estimated accounting loss on disposal: approximately HK$3.67 million, derived from comparing the HK$170.66 million consideration with the HK$174.32 million carrying value of the disposed interests as at 31 March 2026. • Net cash inflow (after transaction costs): about HK$170.62 million, earmarked for general working capital.

Target Company snapshot • Holds majority stakes in trusts owning two Brisbane office properties (built 1976 and 1982) with 35,649 sq m net lettable area and 157 car bays. • Unaudited financials show nil revenue and profit for 2024–2025; net assets stood at HK$0.08 million against total assets of HK$429.76 million and liabilities of HK$429.68 million as at 31 December 2025.

Strategic rationale Management cites persistent headwinds in Australia’s office market, including elevated interest rates and subdued demand in Brisbane. The board views the asset as non-core and believes monetising the investment now mitigates potential further value erosion while enhancing liquidity for future opportunities.

Regulatory status The disposal qualifies as a “discloseable transaction” under Hong Kong Listing Rule 14.07, with no shareholder approval or circular required. Completion is conditional on regulatory clearance under Australia’s Foreign Acquisitions and Takeovers Act, consents from co-owners, lenders and other shareholders, plus customary warranties. The long-stop date is three months from signing, extendable by another three months if necessary.

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