China Merchants Land Enters Shenzhen Office Lease With Parent-Linked Unit

China Merchants Land (00978) said an indirect wholly owned subsidiary has signed a property lease agreement with a company under China Merchants Shekou for office space in Shenzhen's Nanshan district, according to ETNet. The leased premises are at Phase II of New Times Plaza, No. 5 Taizi Road, with a gross floor area of about 997 square metres. The lease runs from Sept. 1 this year to Aug. 31, 2031, for 60 months, with a fixed monthly rent of RMB 219,300 and total rent of about RMB 13.16 million over five years. Under HKFRS 16, the group expects to recognise a right-of-use asset of about RMB 14.244 million. China Merchants Shekou is the controlling shareholder of China Merchants Land, holding an indirect stake of about 74.35%, making the transaction a connected deal. The company said the property will serve as its main business and office location in Shenzhen, and no deposit is required, which it said will reduce initial capital outlay and cash flow pressure.