TROOPS, Inc. Accelerates Global Expansion with Strategic £40M UK Property Portfolio Acquisition to Diversify Assets and Expand Co-living / Co-working Footprint

Rhea-AI Summary

TROOPS, Inc. (NASDAQ: TROO) has signed a non-binding MOU to acquire a £40 million UK property portfolio, marking a significant expansion of its global footprint. This strategic move follows TROOPS' recent ventures in Asia, including investments in a Malaysian co-living operator and a 49% stake in a Taiwanese co-working space.

The acquisition aims to diversify TROOPS' portfolio by combining cash and share consideration, adding stable rental income to complement its Asian co-living/co-working operations. This expansion aligns with the company's strategy to develop a globally diversified service platform, balancing Asian operating ventures with UK income-generating assets while creating opportunities for cross-market synergies.

The transaction remains subject to due diligence and definitive agreements.

Positive

• Strategic £40M UK property portfolio acquisition expands global presence
• Diversification of revenue streams through stable, passive rental income
• Recent expansion into Asian markets with Malaysian and Taiwanese partnerships
• Creation of cross-market synergies between Asian and European operations

Negative

• Non-binding MOU subject to due diligence and definitive agreements
• Potential dilution from share issuance component of acquisition
• Execution risks in managing multi-continent operations
• Geopolitical and regulatory risks across different markets

Insights

Real Estate Investment Strategist

TROOPS' £40M UK property acquisition diversifies its portfolio with stable income assets while expanding its co-living/co-working model globally.

TROOPS' non-binding MOU to acquire a £40 million UK property portfolio represents a calculated strategic pivot from its recent Asian market entries. This acquisition isn't merely geographic expansion—it's a deliberate asset class diversification that balances the company's operational co-living/co-working ventures in Malaysia and Taiwan with passive income-generating real estate in the UK.

The transaction structure combining cash and share issuance suggests TROOPS is preserving capital flexibility while using equity as acquisition currency. This approach minimizes immediate cash outlays while potentially reducing the dilutive impact compared to pure equity financing.

What's particularly noteworthy is TROOPS' emerging "barbell strategy"—balancing higher-growth operating businesses in Asia with more stable UK real estate assets. This provides three key advantages:

• Creates immediate passive income streams to fund growth in capital-intensive segments
• Reduces geographic concentration risk across multiple markets
• Establishes a European foothold for potential expansion of their co-living/co-working concepts

However, the non-binding nature of the MOU introduces execution uncertainty, and TROOPS will need to demonstrate effective property management capabilities in a new market. Success hinges on whether they can effectively transfer their operational expertise from Asia to the UK market, where co-living and flexible workspace dynamics differ significantly. The potential synergies between passive real estate ownership and operational co-living/co-working models will determine whether this diversification truly enhances shareholder value or simply adds portfolio complexity.

HONG KONG, Aug. 14, 2025 /PRNewswire/ -- TROOPS, Inc. (NASDAQ: TROO) ("TROOPS" or the "Company") today announced the Company signed a non-binding Memorandum of Understanding ("MOU") to acquire a portfolio of UK property assets valued at approximately £40 million on August 13, 2025. This strategic acquisition accelerates TROOPS' global growth strategy, diversifying its asset mix with income-generating international real estate across markets from Asia to Europe.

Strategic Transaction Highlights

- £40 Million Portfolio: Acquisition of UK property-holding companies, combining cash consideration and issuance of TROOPS' ordinary shares to eligible investors.

- Global Expansion: Builds on TROOPS' recent entry into Asian markets, including a stake in a Malaysian co-living operator (May 2025) and 49% of a Taiwan-based co-working space (July 2025).

- Diversified Income: Adds stable, passive rental income to complement TROOPS' co-living/co-working operating models in Asia.

- Market Synergy: Expands TROOPS' innovative urban solutions into the UK — a key market for co-living and flexible workspace demand.

Enhanced Strategic Vision

The acquisition advances TROOPS' strategy to:

(a) Diversify Globally: Balance Asian operating ventures (Malaysia and Taiwan) with UK income-generating assets, de-risking the portfolio.

(b) Scale Passive Income: Secure recurring revenue from prime UK real estate to fund growth in core co-living/co-working segments.

(c) Unlock Cross-Market Synergies: Leverage design and technology expertise across all markets, from Asia to Europe.

The Company's UK expansion is a deliberate next step in building a globally diversified service platform. Following the Company's recent moves in Malaysia and Taiwan, this acquisition adds high-quality UK assets that will generate immediate passive income while creating a foothold for the group's co-living and co-working brands in Europe. Together, these initiatives position TROOPS as a unique, multi-continent operator empowering modern urban lifestyles.

Next Steps

The transaction remains subject to due diligence, definitive agreements, and customary closing conditions. Further details will be disclosed upon signing binding documentation.

Safe Harbor and Informational Statement

This announcement contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, including, without limitation, those with respect to the objectives, plans and strategies of the Company set forth herein and those preceded by or that include the words "believe," "expect," "anticipate," "future," "will," "intend," "plan," "estimate" or similar expressions, are "forward-looking statements". Forward-looking statements in this release include, without limitation, the effectiveness of the Company's multiple-brand, multiple channel strategy and the transitioning of its product development and sales focus and to a "light-asset" model, Although the Company's management believes that such forward-looking statements are reasonable, it cannot guarantee that such expectations are, or will be, correct. These forward looking statements involve a number of risks and uncertainties, which could cause the Company's future results to differ materially from those anticipated. These forward-looking statements can change as a result of many possible events or factors not all of which are known to the Company, which may include, without limitation, our ability to have effective internal control over financial reporting; our success in designing and distributing products under brands licensed from others; management of sales trend and client mix; possibility of securing loans and other financing without efficient fixed assets as collaterals; changes in government policy in China; China's overall economic conditions and local market economic conditions; our ability to expand through strategic acquisitions and establishment of new locations; compliance with government regulations; legislation or regulatory environments; geopolitical events, and other events and/or risks outlined in the Company's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F and other filings. All information provided in this press release and in the attachments is as of the date of the issuance, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

About TROOPS, Inc.

TROOPS, Inc. is a conglomerate group of various businesses with its headquarters based in Hong Kong. The group is principally engaged in (a) money lending business in Hong Kong providing mortgage loans to high quality target borrowers (b) property investment to generate rental income and (c) the development, operation and management of an online financial marketplace that provides one-stop financial technology solutions including API services by leveraging artificial intelligence, big data and blockchain, and cloud computing (SaaS). The group's vision is to operate as a conglomerate to build synergy within its own sustainable ecosystem thereby creating value to its shareholders.

For more information about TROOPS, Inc., please visit our investor relations website: www.troops.co 

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SOURCE TROOPS

FAQ

What is the value of TROOPS' UK property portfolio acquisition?

TROOPS signed a non-binding MOU to acquire a £40 million UK property portfolio on August 13, 2025.

What recent expansions has TROOPS (NASDAQ:TROO) made in Asia?

TROOPS acquired a stake in a Malaysian co-living operator in May 2025 and 49% of a Taiwan-based co-working space in July 2025.

How will the UK acquisition benefit TROOPS shareholders?

The acquisition will provide stable, passive rental income to fund growth in core segments while diversifying the portfolio across markets from Asia to Europe.

What are the key risks of TROOPS' UK property acquisition?

The key risks include the non-binding nature of the MOU, pending due diligence, potential share dilution, and challenges in managing multi-continent operations.

What is TROOPS' global expansion strategy?

TROOPS aims to build a globally diversified service platform by balancing Asian operating ventures with UK income-generating assets while leveraging design and technology expertise across markets.