Hong Kong property tycoon Vincent Lo mulls spinning off Shui On Land’s commercial assets in China

Shui On Land says it is considering a spin-off and Hong Kong listing of its commercial investment properties

The company had attempted to separately list its flagship development in Shanghai, Xintiandi, in 2012

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One of Shui On Land’s commercial developments in Shanghai’s Xintiandi neighbourhood. Photo: Handout

Published: 3:15pm, 5 Aug 2021Updated: 8:42pm, 5 Aug 2021

Shui On Land is considering reviving a plan to spin off its commercial investment properties and property management business and list them in Hong Kong. The move comes after a plan to spin off its Shanghai property assets, Xintiandi, in 2012, was shelved.

The Shanghai-headquartered developer, controlled by tycoon Vincent Lo Hong-sui, said no decision has been made on such a possible spin off and that such a plan would still depend on regulatory approvals and market conditions.

“No decision has been made by the board of directors,” it said in a filing to the Hong Kong stock exchange late Wednesday. The company also did not specify which properties would be included in the spin-off.

The announcement came after a media report earlier this week said the developer has chosen UBS and Morgan Stanley to help arrange a stock offering in Hong Kong by its wholly-owned unit China Xintiandi. Shui On Land declined to comment on that report.

Vincent Lo Hong-sui, chairman of Shui On Land, is one of Hong Kong’s richest individuals. Photo: Winson Wong

Founded in 2004, Shui On Land focuses on property development in mainland China. Lo diversified away from Hong Kong after parent Shui On Group was delisted from the Hong Kong stock exchange in 1990.

Shui On Land attempted in 2012 to spin off China Xintiandi, which is best known for its iconic retail and entertainment project along the Huaihai Road shopping belt. Xintiandi, a historical residential area, has been redeveloped into a Shanghai landmark, into an upscale retail-cum-commercial development called Shui On Plaza.