CWT International : Announcements and Notices - Update Announcement - Completion of Disposals of Warehouse Properties of the Group in Singapore

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CWT INTERNATIONAL LIMITED

(Incorporated in Hong Kong with limited liability)

(Stock Code: 521)

UPDATE ANNOUNCEMENT - COMPLETION OF DISPOSALS

OF WAREHOUSE PROPERTIES OF THE GROUP IN SINGAPORE

Reference is made to the announcement made by CWT International Limited (the "Company") on 4 July 2018 and the circular issued by the Company dated 26 July 2018 (the "Circular") in relation to the proposed Disposal of the Warehouse Properties by the Vendors, each an indirect wholly-owned subsidiary of the Company, to the Purchaser. Unless otherwise specified, capitalised terms used in this announcement shall have the same meanings as those terms are defined in the Circular.

The Board is pleased to announce that by 25 September 2018, the JTC Sale Approval has been obtained with respect to the Disposal of each of the Warehouse Properties. In view that this is the last Condition to be satisfied pursuant to the Sale and Purchase Agreements, on 28 September 2018, the Vendors and the Purchaser have proceeded to Completion of each of the Warehouse Properties pursuant to the terms of the Sale and Purchase Agreements.

As part of the conditions for the granting of the JTC Sale Approval, the tenure of the Master Lease Agreement for the following Warehouse Properties has been extended from 10 years to the following extended lease terms:

Warehouse Property Tenant	Extended Lease Term
6 Fishery Port Road Property CWT SG	From Completion up to 28 June 2041
38 Tanjong Penjuru Property CWT SG	From Completion up to 31 October 2035

Pursuant to the Master Lease Agreements for the above Warehouse Properties, the Tenant has the right, subject to terms and conditions, to surrender up to 30% of the gross floor area of the leased area after the tenth year of the lease term. After the tenth year and the sixteenth year of the lease term for the Master Lease Agreement for the 6 Fishery Port Road Property, the rent under the Master Lease Agreement is subject to rent review based on the average of 2 market valuations. After the tenth year of the term for the Master Lease Agreement for the 38 Tanjong Penjuru Property, the rent under the Master Lease Agreement is subject to rent review based on the average of 2 market valuations. In the years following the rent review, the monthly rent will increase on an annual basis at a rate of 1.5% from the monthly rent in the immediate preceding year.

Save for provided above, the principal terms and conditions of the Sale and Purchase Agreements and the Master Lease Agreements have remained the same as those disclosed in the Circular, and there are no other conditions imposed by the JTC Sale Approval that would give rise to a substantial burden on the Group or a material obstacle to Completion of the Disposal of the Warehouse Properties.

Upon the occurrence of Completion, the title of the Warehouse Properties has been transferred by the Vendors to the Purchaser and the Vendors and the Purchaser have entered into the Master Lease Agreements (with the above amendments incorporated) with respect to leasing of the Warehouse Properties by the Group. Accordingly, the Group will continue to occupy the Warehouse Properties in its usual and ordinary course of business according to the terms and conditions of the Master Lease Agreements.

By order of the Board

CWT INTERNATIONAL LIMITED

Xu Haohao

Executive Director

Hong Kong, 28 September 2018

As at the date of this announcement, the Board comprises Mr. Guo Ke (Executive Director and Co-Chairman), Mr. Xu Haohao (Executive Director and Co-Chairman), Mr. Ding Lei (Executive Director and Chief Executive Officer), Mr. Zhao Quan (Executive Director), Mr. Leung Shun Sang, Tony (Non-executive Director), Mr. Mung Bun Man, Alan (Non-executive Director), Mr. Leung Kai Cheung (Independent Non-executive Director), Mr. Liem Chi Kit, Kevin (Independent Non-executive Director) and Mr. Lam Kin Fung, Jeffrey (Independent Non-executive Director).