SMART GLOBE has signed a land lease agreement in Zambia, generating stable rental income

SMART GLOBE (01481.HK) announced that last Friday (October 31), its indirectly non-wholly-owned subsidiary Tera Logistics (as the lessor) entered into a lease agreement with Harmony Prosper Zambia (as the lessee) for two plots of land located in Ndola, Copperbelt Province, Zambia, for a term of four years and eleven months.

According to the agreement, the lessor owns or is obligated to acquire the buildings, structures, and improvements that the lessee will construct on the land, as well as any subsequent renovations to those facilities, with a total construction cost not exceeding USD 6 million (approximately HKD 46.8 million). During the lease term, the group will receive stable rental income, and the lessee has committed to prioritizing the use of the group's transportation services under the same commercial terms.

The group stated that entering into this agreement is an important step for the group in expanding its supply chain management services in sub-Saharan Africa, which will bring significant benefits to the group, including revenue generation and asset utilization: the agreement will generate stable rental income for the group during the lease term. By leasing the rental area to high-quality lessees, the group can maximize the return on land assets without significant capital expenditures