OUE acquires 3.19% stake in Gemdale Properties for $24.5m

It involved 530 million ordinary shares.

OUE Limited has acquired a 3.19% stake in Gemdale Properties and Investment Corporation Limited (GPI) for a total consideration of approximately $24.5m (HK$146.4m). The acquisition was made through OUE’s wholly-owned subsidiary, Beacon Limited, on 8 and 9 May 2025.

The transaction involved 530 million ordinary shares at an average price of $0.047 (HK$0.28) per share.

The group said it was fully funded through internal resources and paid in cash. According to OUE’s board of directors, the acquisition was based on a number of factors, including GPI’s current share price performance and the long-term outlook for both the company and China’s broader real estate sector.

OUE said the investment aligns with its positive long-term outlook on China’s economy and real estate sector. The group believes GPI’s current share price undervalues its potential and the broader sector’s recovery.

As of 31 December 2024, GPI’s net tangible asset per share was $0.191 (HK$1.143). The acquisition would have had no material impact on OUE’s net tangible assets per share, which stood at $4.16 at the end of 2024.