Nam Tai Property Inc. Secures Major Lease Agreement for Technology Center Dormitories
SHENZHEN, China – Nam Tai Property Inc. (OTC Expert Market: NTPIF) has announced a significant development in its Technology Center project, entering into a six-year master lease agreement with Shenzhen Anju Leyu Development & Construction Co. Ltd. (“Shenzhen Anju”), a prominent state-owned entity. This strategic partnership is poised to mitigate project risks and accelerate revenue generation for the company’s burgeoning Technology Center development in Shenzhen’s Bao’an District.
The agreement, covering approximately 456 dormitory units spread across 24,000 square meters, represents a substantial step forward for Nam Tai Property’s real estate portfolio. The Technology Center is currently under construction, with projected delivery in 2026. The collaboration with Shenzhen Anju, which manages rental housing programs for the Futian District Government – the administrative and commercial heart of Shenzhen – provides a robust foundation for the project’s success.
This master lease is expected to generate an estimated RMB 18 million in stable annual rental income once the property reaches full occupancy. The immediate lease-up is anticipated due to exceptionally high demand for subsidized housing in Shenzhen, evidenced by a waiting list exceeding 80,000 applicants. This strong demand, coupled with a government subsidy that covers 70% of rental costs, significantly reduces the risk of vacancies and minimizes lease-up expenses for Nam Tai Property. While the rental rates are strategically set, the guaranteed high occupancy and reduced costs are projected to deliver competitive yields, comparable to market-rate leasing.
Bo Hu, Chief Executive Officer of Nam Tai Property Inc., emphasized the strategic importance of this agreement, stating, “This master lease arrangement effectively de-risks the transaction by partnering with a government-backed counterparty, ensuring high payment security and reliability. This partnership is expected to yield higher-than-market occupancy rates and a significantly shortened lease-up timeline. This agreement is anticipated to enhance the Company’s revenue stability, reduce operational risks, and support long-term value creation for shareholders.”
The partnership with Shenzhen Anju not only secures a stable revenue stream but also aligns Nam Tai Property with the broader urban development and housing initiatives in Shenzhen, a city known for its rapid technological advancement and economic growth. The reliable, government-backed tenancy structure provides a predictable income model, which is particularly attractive in the current real estate market. This move signals Nam Tai Property’s focus on projects with strong demand fundamentals and governmental support, potentially paving the way for future developments in similar strategic partnerships.
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