Hong Kong–listed Kerry Properties Limited (KERRY PPT, 00683) disclosed that its wholly owned subsidiary, Shanghai Brilliant Prestige Real Estate (SHBP), has signed a Cash Advance Agreement with joint venture Million Fortune Development (Shenzhen) (MFSZ) on 31 March 2026.
Under the agreement, SHBP will provide MFSZ with revolving advances of up to RMB550.00 million (HK$623.70 million). Each drawdown will carry interest at the prevailing five-year Loan Prime Rate minus 70 basis points, recalculated annually on 1 January. Interest is payable once a year, while the principal is due in a single repayment no later than 31 December 2028, giving each tranche a tenure of up to three years. MFSZ may prepay without penalty but cannot re-borrow repaid amounts. No collateral or corporate guarantee is required.
Proceeds will fund the “Kerry Project” on the Qianhai Kerry Centre site in Shenzhen, covering construction, development outlays, operating expenses, loan servicing and general working capital. The lending will be sourced from SHBP’s surplus cash, allowing the group to deploy idle funds and earn interest income.
MFSZ is indirectly owned 25% by Kerry Properties, 50% by controlling shareholder Kerry Holdings (KHL) and 25% by The Bank of East Asia (BEA). Because KHL holds half of MFSZ, the transaction is classified as a connected transaction under Chapter 14A of Hong Kong’s Listing Rules. With applicable percentage ratios exceeding 0.1% but below 5%, the deal requires public disclosure but is exempt from circular and shareholder-approval requirements. Chairman and CEO Mr. Kuok Khoon Hua, being an associate of KHL, abstained from the board vote.
Management stated that the interest terms were set after arm’s-length negotiations and exceed onshore deposit rates available to SHBP, making the arrangement commercially favourable.
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