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Markets · Trust
USD 800 mln Hong Kong IPO planned for “Greater Bay Area” REIT
2019/09/03 06:38:31
REIT, Hong Kong Stock Exchange, Greater Bay Area,

Sep 03, 2019 (China Knowledge) - China Merchants Shekou Industrial Zone Holdings (001979) announced on Monday to list its real estate investment trust (REIT) on the main board of the Hong Kong Stock Exchange (HKEx). Bloomberg has previously estimated the listing could raise about USD 800 mln.

Shenzhen-listed China Merchants Shekou Industrial Zone Holdings, engaging in the development and operation of industrial estates, communities and cruise businesses, will sponsor and be a major shareholder of the REIT. Citi (C) and China Merchants Securities (Hong Kong) are the sole listing agent and the financial advisor, respectively, while Fair Winner Enterprises is the REIT manager.

At the initial stage, the REIT will focus on properties in the “Greater Bay Area” which covers Guangdong, Hong Kong, and Macau. It will step up to incorporate properties in Beijing and Shanghai in the next stage.

The redacted filing of the listing shows that the CMC Reit portfolio will initially cover five properties in Shekou, Shenzhen, including a grade A office building named New Times Plaza, three office building complexes located in Shekou Net Valley, a business hub for hi-tech companies and startups, and a shipping center Garden City Shopping Centre in Shekou sub-district.

As of 30 June this year, the aggregate gross floor area and a gross rentable area of the five properties booked at about 262,378.9 square meters and 249,988.3 square meters, respectively, with an average occupancy rate of 81%. Meanwhile, the appraised value was registered at USD 906.3 mln.

If the listing is successful, CMC Reit will be the first REIT to be listed on HKEx since the IPO of Spring Reit (01426) in December 2013.

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