‘Greater Bay Area’ reit files documentation for US$800 million Hong Kong IPO
- If successfully launched, CMC Reit will be first such trust to list in Hong Kong in over five years
- The total appraised value of portfolio properties stood at 6.5 billion yuan as of June 30
China Merchants Shekou Industrial Zone Holdings, which engages in the development and operation of industrial estates, communities and cruise businesses, said in an exchange filing on Monday night that it was launching a share offering of its real estate investment trust (reit) on the Hong Kong stock exchange’s main board.
Much of the listing details for China Merchants Commercial Real Estate Invest Trust (CMC Reit), such as the amount to be raised and profit forecast of the assets in the reit, were redacted. But Bloomberg has previously reported the listing could raise about US$800 million.
The reit is sponsored by Shenzhen-listed China Merchants Shekou Industrial Zone Holdings, which will be a major shareholder of the reit. The sole listing agent is Citi, while the financial adviser is China Merchants Securities (Hong Kong). The reit manager is Fair Winner Enterprises.
The announcement follows news last week that three companies had filed for initial public offerings (IPOs) in Hong Kong, suggesting sentiment may be starting to improve after three months of increasingly volatile anti-government protests that have shaken social and financial stability.
According to the redacted filing, the CMC Reit portfolio will initially comprise five properties in Shekou, Shenzhen.
These include a grade A office building called New Times Plaza, three office building complexes that are located in Shekou Net Valley, a business hub for hi-tech companies and start-ups, and a shopping centre in Shekou subdistrict called Garden City Shopping Centre.