Advancing "Strategy 2.0" and Deepening Local Presence to Support the "Study in Hong Kong" Brand

HONG KONG, Aug. 31, 2026 /PRNewswire/ -- China Merchants Commercial Real Estate Investment Trust ("CMC REIT" or the "REIT", HKEX stock code: 1503) announced the signing of a share purchase agreement to acquire a new CM+U student accommodation property, a brand-new en-bloc building located in Hung Hom, Kowloon, Hong Kong. The transaction is based on an agreed value of the property of approximately HK$528.5 million.

The acquisition will be executed through a 55%-owned joint venture platform of CMC REIT. As of 31 May 2026, the independent appraised value of the property stood at approximately HK$569.4 million, with the agreed value representing a discount of approximately 7.2%. The final purchase price will be determined in accordance with the Net Asset Value (NAV) adjustment mechanism under the share purchase agreement and will be funded by a combination of bank financing and the REIT's internal resources.

Previously, CMC REIT acquired the CM+U student accommodation in Tsim Sha Tsui at the end of 2025, which has reached 100% occupancy and officially commenced operations on 15 August. This latest acquisition in Hung Hom will mark the REIT's second student accommodation project in Hong Kong, signaling the accelerated execution phase of its "Strategy 2.0". It further underscores the REIT's commitment to deepening its presence in Hong Kong's core market and expanding into diversified asset classes, further expanding its student accommodation footprint and optimizing its asset portfolio.

Strategically Located in Hung Hom's Academic Hub, Expanding Premium Bedspace Scale and Network Effects

The target en-bloc student accommodation property is situated at Nos. 470-478 Chatham Road North, Hung Hom, Kowloon. Newly completed in 2025, the 25-storey building has a total gross floor area of approximately 42,000 sq. ft., offering over 200 premium bedspaces and several retail units. Designed with the concept of an "academic eco-community," all units feature premium building materials, brand-new kitchen and bathroom fixtures, boutique furniture, and built-in storage spaces. The project offers a diverse range of unit layouts for students to choose from, alongside shared living spaces including reading areas, an indoor basketball court, and outdoor leisure zones.

The property boasts a mature neighborhood and an extensive transportation network, offering seamless connections to the MTR Hung Hom, Ho Man Tin, and To Kwa Wan stations. It is within walking distance of The Hong Kong Polytechnic University and Hong Kong Metropolitan University, and provides easy access via the MTR to other higher education institutions such as Hong Kong Baptist University and City University of Hong Kong. The project has already completed its primary leasing arrangements for the new academic year, receiving an enthusiastic market response and showing continued strong demand.

Leveraging Proven Operational Experience to Build a Student Accommodation Platform

As a newly completed property with an established operational foundation, the project can be immediately integrated into CMC REIT's revenue stream upon completion of the acquisition, enhancing the visibility and stability of rental income. Together with the CM+U student accommodation in Tsim Sha Tsui acquired at the end of 2025, CMC REIT has established a preliminary, scaled student accommodation network in the core academic circle of Kowloon. This will help enhance brand influence and operational synergies, further consolidating the asset base of its youth apartment brand, "CM+U", in the Hong Kong leasing market. "CM+U" not only embodies the core concepts of "youth" and "university", but also focuses on "you" (every individual), carrying the expectation of "cheering for you".

CMC REIT will continue to elevate the management standards and service quality of its student accommodation assets, creating living spaces that integrate convenience, comfort, and community interaction around the academic, commuting, lifestyle, and social needs of students. The REIT will also drive the scalable development of its student accommodation business, further unlocking asset value and strengthening long-term earning capacity.

Actively Responding to Hong Kong's "Policy Address" Initiatives, Fulfilling the Mission of a Hong Kong-based SOE

In its "Policy Address," the Hong Kong SAR Government explicitly emphasized its ongoing focus on youth development and the optimization of talent policies, aiming to build the "Study in Hong Kong" brand and raising the quota limit for non-local students to 50%. This initiative aims to develop Hong Kong into a premier destination for international top-tier talent and an international hub for post-secondary education.

As the first REIT sponsored by a state-owned enterprise (SOE) in Hong Kong, CMC REIT remains committed to its strategic principle of "based in Hong Kong, taking root in Hong Kong." By leveraging the industrial resources, asset management expertise, and platform capabilities of China Merchants Group and China Merchants Shekou, the REIT continues to serve the broader picture of Hong Kong's urban development and talent attraction. Facing the structural demand driven by the shortage of university hostel spaces in Hong Kong, CMC REIT is proactively investing in high-quality student accommodations in prime locations. This not only allows the REIT to tap into a rental sector with long-term growth potential but also supports the SAR Government in building the "Study in Hong Kong" brand through market-driven approaches, fully embodying the responsibility of a Hong Kong-based SOE in serving the city and integrating into the national development blueprint.

Comprehensive Deepening of "Strategy 2.0", Continuously Enhancing Income Stability and Long-term Returns

Since the approval to amend the investment policy and extend the fund's duration to perpetuity at the Extraordinary General Meeting in October 2025, CMC REIT's "Strategy 2.0" has been steadily implemented. The investment scope has been further broadened, and the path for portfolio upgrades has become clearer. Amid macroeconomic headwinds and commercial real estate market cycle adjustments, student accommodation—as a newly added asset class for the REIT—features stable rental income, strong counter-cyclical capabilities, and high demand resilience, which will help further optimize the revenue structure and enhance distribution stability.

Looking ahead, CMC REIT will continue to acquire and manage high-quality, diversified, and resilient assets across the Greater China region. By capitalizing on the SOE platform advantages of China Merchants Group, the industrial synergy of China Merchants Shekou, and lower financing costs, the REIT will maintain robust financial discipline and drive long-term, sustainable growth in distribution per unit, creating stable value returns for Unitholders.

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About China Merchants Commercial REIT

China Merchants Commercial REIT (1503.HK) is a Hong Kong collective investment scheme constituted as a unit trust and authorised under section 104 of the SFO. China Merchants Commercial REIT was launched by a well-known state-owned enterprise: China Merchants Shekou Industrial Zone Holdings Co., Ltd. (001979.SZ). It was listed on the Main Board of the Hong Kong Stock Exchange in December 2019, marking the first successful listing of a REIT in Hong Kong since 2014. It is also the first REIT managed by a state-owned enterprise of the People's Republic of China to be listed in Hong Kong. China Merchants Commercial REIT is a REIT formed to primarily own and invest in high quality income-generating commercial properties in the PRC. Its initial focus is: (i) the Greater Bay Area (other than Foshan and Guangzhou, being two of the CML Cities), and (ii) Beijing and Shanghai. China Merchants Commercial REIT holds seven high-quality properties, with five located in Shekou, Shenzhen, one located in Beijing, and one student hostel located in Tsim Sha Tsui, Hong Kong. It is managed by the REIT Manager whose key investment objectives are to provide Unitholders with stable distributions, sustainable and long-term distribution growth.

For more information about China Merchants Commercial REIT, please visit its corporate website: http://www.cmcreit.com/.