Dynamic Holdings Limited has formalised a three-year mandate for property management services at its 30,188 sq m office portfolio in the West Tower of Eton Place, Pudong, Shanghai. Eton Property Management (Shanghai) Company Limited, an indirect wholly owned subsidiary of Eton Properties, will manage the property from 1 October 2024 to 30 September 2027 under the existing Deed of Mutual Covenant.

The board has proposed annual caps of up to RMB4.00 million (HK$4.56 million) for the financial year ending 30 June 2026 and RMB7.00 million (HK$7.98 million) for the year ending 30 June 2027. The caps are based on the current management fee of RMB28 per sq m per month, recent occupancy levels of 83 % in FY 2024 and 70 % in FY 2025, a buffer for potential vacancy, anticipated fee inflation linked to building age, and expected RMB/HKD exchange-rate movements.

Historically, Dynamic Holdings paid RMB2.01 million, RMB2.03 million and RMB2.58 million in management fees for the three fiscal years ended 30 June 2023, 2024 and 2025 respectively (HK$2.29 million, HK$2.32 million and HK$2.94 million). The sharp uplift in the proposed caps reflects higher projected costs and contingency for lower occupancy.

Because both the property manager and the project developer are indirect subsidiaries of Eton Properties—controlled by executive directors and substantial shareholders Dr Tan Lucio C. and Mrs Tan Carmen K.—the arrangement is classified as a continuing connected transaction under Chapter 14A of the Hong Kong Listing Rules. With percentage ratios exceeding 5 % but total consideration below HK$10 million, the deal requires public disclosure and annual review but is exempt from circular and independent shareholder approval. Dr Tan and Mrs Tan abstained from the board vote.

Key internal controls include regular cap-tracking reviews, annual assessments by independent non-executive directors, and yearly audits of pricing and cap compliance. Dynamic Holdings states that the terms are “fair and reasonable” and aligned with those applied to other owners in Eton Place.