Grand Ming Group Holdings Limited (01271.HK) announced a very substantial disposal on 18 September. Its two indirect wholly‑owned subsidiaries have entered into an agreement to sell the iTech 3.1 and iTech 3.2 data‑centre development projects in Fanling, New Territories, to Amazon Data Services Hong Kong Limited, the Hong‑Kong‑based operating entity of AWS. The maximum total consideration is HK$2.445 billion.
Under the deal, a minimum fixed consideration of HK$2.179 billion will be payable upon project handover. An additional contingent payment of up to HK$266 million may be made if post‑completion conditions are satisfied, and this sum is not guaranteed.
Built to Tier‑IV‑ready standards for AI and cloud workloads, the two sites cover a total gross floor area of around 186 000 sq ft.
Phases of iTech 3.1 (On‑Kui Street 3) were handed over to Amazon in December 2025 and already generate rental income, while remaining construction works are ongoing. iTech 3.2 (On‑Chuen Street 8) is still under construction with no rental revenue to date.
The transaction covers land, buildings, easements, licences, intellectual property and related construction and service contracts.
Grand Ming stated the disposal aims to strengthen liquidity, cut leverage and reduce financing costs, with estimated annual interest savings of around HK$136 million. An accounting loss of approximately HK$1.088 billion is expected, excluding the potential bonus payment. The proceeds will be used for debt repayment and working capital support.
Amazon, already a tenant of iTech 3.1, will expand its AWS infrastructure footprint in Hong Kong to meet rising demand for AI‑powered cloud capacity. The completion of iTech 3.2 is conditional on the completion of iTech 3.1. The disposal is subject to shareholder approval.
Disclaimer: Information is compiled from HKEX public announcements and is for reference only, and does not constitute investment advice.