SHUI ON LAND (00272) has announced that on February 6, 2026, Shui On General Partner and Shanghai Shui On (each an indirect wholly-owned subsidiary of the company), the holding company Qiao Heng Limited, the project company Shanghai Xingqiao Real Estate Co., Ltd., Manulife Limited Partner, China Life Trust, Dajia Limited Partner, and Dajia General Partner entered into a cooperation agreement to form a joint venture. The purpose of the joint venture is to carry out an equity transfer and to hold the project assets through the project company. The assets owned by the project company include office buildings, a shopping mall, and other facilities located in Shanghai's Huangpu District, with a total gross floor area for sale and lease of approximately 79,000 square meters. Upon completion of these transactions, the joint venture will hold a 99% equity interest in the project company. The company will, through Shui On General Partner and Shanghai Shui On (each an indirect wholly-owned subsidiary), own a 40.5% partnership interest in the joint venture. Following the completion of these transactions, the accounting treatment of the project company within the group will remain unchanged. The financial results of neither the joint venture nor the project company will be consolidated into the group's financial statements. These transactions enable the company to convert its offshore investment in the project assets, held through the holding company, into an onshore investment via the joint venture. This structure allows new investors to invest in the project assets through the joint venture. It also enables the project company to obtain onshore bank financing, which helps mitigate the foreign exchange risk arising from the mismatch between the offshore holding and financing structure and the project assets' RMB-denominated income. Furthermore, utilizing onshore financing reduces the financing costs for the project assets.