The Securities and Futures Commission of Hong Kong, Hong Kong Exchanges and Clearing Limited, The Stock Exchange of Hong Kong Limited and Hong Kong Securities Clearing Company Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
Hui Xian Real Estate Investment Trust(a Hong Kong collective investment scheme authorised under section 104 of the Securities and Futures Ordinance
(Chapter 571 of the Laws of Hong Kong))
(Stock Code: 87001)
Managed by Hui Xian Asset Management Limited CONNECTED PARTY TRANSACTIONS IN RELATION TO THE PURCHASE OF CLEANING SUPPLIESMembers of the Hui Xian REIT Group have been purchasing cleaning supplies from SH Whitecat from time to time. In the past, the consideration paid by Hui Xian REIT Group in respect of the Cleaning Supplies Purchase Transactions have not been substantial, and the aggregate transaction amount for each financial year has not exceeded HK$1 million. As the property portfolio of Hui Xian REIT expanded with the acquisition of interests in two hotels in Chongqing and Chengdu respectively in February and March 2017, the Manager envisages that the aggregate transaction amount for the Cleaning Supplies Purchase Transactions for the year ending 31 December 2017 will exceed HK$1 million. The Manager expects that the aggregate consideration payable by Hui Xian REIT Group to SH Whitecat in respect of the Cleaning Supplies Purchase Transactions for the year ending 31 December 2017 will not exceed RMB1,500,000.
Hui Xian Cayman, being a significant holder (within the meaning of the REIT Code) of Hui Xian REIT, is a connected person of Hui Xian REIT. SH Whitecat, being an associated company of Hui Xian Cayman, is therefore also a connected person of Hui Xian REIT and the Cleaning Supplies Purchase Transactions constitute connected party transactions of Hui Xian REIT.
As it is expected that the aggregate consideration in respect of the Cleaning Supplies Purchase Transactions for the year ending 31 December 2017 will not exceed RMB1,500,000, which is less than 5% of the latest net asset value of Hui Xian REIT as at 31 December 2016 and adjusted to take into account the completion of the acquisition of interest in the two hotels in Chongqing and Chengdu in February and March 2017 respectively, the Cleaning Supplies Purchase Transactions are subject to the reporting and announcement requirements under 8.14 of the REIT Code but Unitholders' prior approval is not required under 8.9 of the REIT Code. A brief summary of the Cleaning Supplies Purchase Transactions will be disclosed in Hui Xian REIT's next published annual report in accordance with 8.14 and 8.15 of the REIT Code.
CLEANING SUPPLIES PURCHASE TRANSACTIONS WITH SH WHITECATMembers of the Hui Xian REIT Group have been purchasing cleaning supplies from SH Whitecat from time to time. In the past, the consideration paid by Hui Xian REIT Group in respect of the Cleaning Supplies Purchase Transactions have not been substantial, and the aggregate transaction amount for each financial year has not exceeded HK$1 million. The historical transaction amount for the Cleaning Supplies Purchase Transactions for the financial year ended 31 December 2016 was RMB646,000 and for the 6 months ended 30 June 2017 was RMB515,000.
As the property portfolio of Hui Xian REIT expanded with the acquisition of interests in two hotels in Chongqing and Chengdu respectively in February and March 2017, the Manager envisages that the aggregate transaction amount for the Cleaning Supplies Purchase Transactions for the year ending 31 December 2017 will exceed HK$1 million.
The Manager expects that the aggregate consideration payable by Hui Xian REIT Group to SH Whitecat in respect of the Cleaning Supplies Purchase Transactions for the year ending 31 December 2017 will not exceed RMB1,500,000. Such amount is determined with general reference to the historical transaction amounts and taking into account the possible growth in costs and expenses and possible new Cleaning Supplies Purchase Transactions which may be entered into between Hui Xian REIT Group and SH Whitecat for the remainder of the year ending 31 December 2017, and the inclusion of a buffer of approximately 25% for contingencies such as unforeseeable market fluctuations.
OPINION OF THE BOARDThe Board (including the independent non-executive directors of the Manager) is of the view that the Cleaning Supplies Purchase Transactions (i) have been and will be entered into in the ordinary and usual course of business of the Hui Xian REIT Group; (ii) have been and will be entered into at arm's length and on normal commercial terms; and (iii) the Cleaning Supplies Purchase Transactions are fair and reasonable and in the interest of Hui Xian REIT and the Unitholders (including independent Unitholders) as a whole.
IMPLICATIONS UNDER THE REIT CODEPursuant to 8.1(g) of the REIT Code, connected person of Hui Xian REIT includes, among others, any "associated company" (within the meaning ascribed to it under the REIT Code) of a significant holder of Hui Xian REIT. Hui Xian Cayman, being a significant holder (within the meaning ascribed to it under the REIT Code) of Hui Xian REIT, is a connected person of Hui Xian REIT. SH Whitecat, being an associated company of Hui Xian Cayman, is therefore also a connected person of Hui Xian REIT and the Cleaning Supplies Purchase Transactions constitute connected party transactions of Hui Xian REIT.
As it is expected that the aggregate consideration in respect of the Cleaning Supplies Purchase Transactions for the year ending 31 December 2017 will not exceed RMB1,500,000, which is less than 5% of the latest net asset value of Hui Xian REIT as at 31 December 2016 and adjusted to take into account the completion of the acquisition of interest in the two hotels in Chongqing and Chengdu in February and March 2017 respectively, the Cleaning Supplies Purchase Transactions are subject to the reporting and announcement requirements under 8.14 of the REIT Code but Unitholders' prior approval is not required under 8.9 of the REIT Code.
A brief summary of the Cleaning Supplies Purchase Transactions will be disclosed in Hui Xian REIT's next published annual report in accordance with 8.14 and 8.15 of the REIT Code.
DEFINITIONS"Board" the board of directors of the Manager
"Cleaning Supplies Purchase Transactions"
the purchase of cleaning supplies by members of the Hui Xian REIT Group from SH Whitecat from time to time
"Hui Xian Cayman" Hui Xian (Cayman Islands) Limited, a company incorporated in
the Cayman Islands with limited liability and a significant holder (within the meaning ascribed to it under the REIT Code) of Hui Xian REIT
"Hui Xian REIT" Hui Xian Real Estate Investment Trust, a collective investment
scheme constituted as a unit trust and authorised under section 104 of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) (Stock Code: 87001)
"Hui Xian REIT Group" Hui Xian REIT and other companies or entities held or controlled by
Hui Xian REIT
"Manager" Hui Xian Asset Management Limited 滙賢房託管理有限公司 , as manager of Hui Xian REIT
"REIT Code" Code on Real Estate Investment Trusts issued by the Securities and
Futures Commission (as amended from time to time)
"SH Whitecat" 上海和黃白貓有限公司 (Shanghai Hutchison Whitecat Company
Limited*), an associated company (within the meaning ascribed to it under the REIT Code) of Hui Xian Cayman
"Unitholders" holders of units of Hui Xian REIT
* For identification purposes only
By order of the Board
Hui Xian Asset Management Limited滙賢房託管理有限公司
(as Manager of Hui Xian Real Estate Investment Trust) KAM Hing LamChairman of the Manager
Hong Kong, 5 September 2017
As at the date of this announcement, the directors of the Manager are Mr. KAM Hing Lam (Chairman and non-executive director); Mr. CHEUNG Ling Fung, Tom and Mr. LEE Chi Kin, Casey (executive directors); Mr. IP Tak Chuen, Edmond, Mr. LIM Hwee Chiang and Mr. YIN Ke (non-executive directors); and Mr. CHENG Hoi Chuen, Vincent, Professor LEE Chack Fan and Dr. CHOI Koon Shum, Jonathan (independent non-executive directors).
Hui Xian Real Estate Investment Trust published this content on 05 September 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 05 September 2017 10:32:09 UTC.
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