Wharf Holdings Ltd

Wharf’s commercial property spin-off to go public on November 23

Wharf Real Estate Investment will initially consist of six Hong Kong investment properties worth over US$29.4 billion

PUBLISHED : Thursday, 16 November, 2017, 7:00am
UPDATED : Thursday, 16 November, 2017, 1:39pm

Wharf Holdings’ new commercial properties spin-off, Wharf Real Estate Investment Company (REIC), is scheduled to list on the main board of the Hong Kong stock exchange, on November 23.

One of Hong Kong’s biggest landowners, Wharf Holdings said on Wednesday the spin-off and listing of Wharf REIC provides a strong investment proposition for investors, and will help increase transparency of both companies’ business operations and financials.

Wharf Holdings slid 1.93 per cent to HK$26.95 in the mid-day trading , taking its losses so far this week 7.63 per cent, after its decision to spin off and list its Hong Kong investment properties. Prior to the price adjustment from the business split, Wharf closed at HK$73 per share yesterday.

It also means the new entity can gain direct access to financing through the capital market, it said, adding its management team will have clearer functions and responsibilities after the spin-off.

Wharf said earlier in August it was hiving off six investment properties in Hong Kong with a market value of over HK$230 billion (US$29.4 billion) into a planned new entity.

The properties are Harbour City and Times Square – Hong Kong’s two biggest malls in shopping districts – Plaza Hollywood, Crawford House, Wheelock House and The Murray.

Existing Wharf shareholders will be allocated 1,000 shares of the new listed entity for every board lot of 1,000 shares that they own.

Wharf has also made clear recently it plans to focus on investment and development properties in mainland China, as well as other Hong Kong real estate, logistics, and hotel management after the demerger.

Wharf Holdings’ mainland business current accounts for no more than half of its total assets.