China Overseas Spins Off Foshan Mall REIT for Shenzhen Listing
Thestandard · 1 SOURCESabout 1 hour ago2 MIN
Summary
China Overseas Land and Investment (0688) announced on Monday that China Asset Management Company and CITIC Securities submitted the registration and listing application for a public real estate investment trust to the China Securities Regulatory Commission and the Shenzhen Stock Exchange . The underlying asset of the REIT is a shopping mall located in Foshan, Guangdong province, owned by Foshan China Overseas Unipark Commercial Management, a subsidiary of the company. The fund is expected to raise 1.53 billion yuan (approximately HK$1.78 billion) .
Key Points
- The REIT structure involves China Asset Management Company as the public fund manager responsible for management and administration
- China Overseas Group will subscribe for 20 percent of the units in issue at the time of listing
- The public fund will acquire all interests in an asset-backed special purpose plan that will purchase the full stake from China Overseas
- Once the acquisition completes, Foshan China Overseas Unipark Commercial Management will no longer be a China Overseas subsidiary
- The application was submitted to both the China Securities Regulatory Commission and the Shenzhen Stock Exchange
Why It Matters
This spin-off marks another step in China Overseas' strategy to unlock value from its property portfolio through capital market instruments. For Hong Kong investors, the listing provides a new avenue to access mainland commercial real estate assets while China Overseas reduces its balance sheet exposure to the retail property sector.
This spin-off marks another step in China Overseas' strategy to unlock value from its property portfolio through capital market instruments. For Hong Kong investors, the listing provides a new avenue to access mainland commercial real estate assets while China Overseas reduces its balance sheet exposure to the retail property sector.