New World Wins Approval to List K11 Shanghai Property REIT
New World Development says it has received approval from the Shanghai Stock Exchange to spin off and list a real estate investment trust backed by K11 Shanghai assets. The proposed New World C-Reit is expected to raise about 3.82 billion yuan, with estimated net proceeds of 3.24 billion yuan for the distressed Hong Kong developer.
New World Development has received approval from the Shanghai Stock Exchange to spin off and list a real estate investment trust backed by K11 Shanghai assets, the Hong Kong developer said. The company disclosed the approval in a statement on Monday. The proposed vehicle, referred to as NWD C-Reit, would be listed on the Shanghai bourse.
New World said the expected offering size was about 3.82 billion yuan, equivalent to approximately US$570 million. The group estimated that its net proceeds from the transaction would be 3.24 billion yuan. The developer is controlled by one of Hong Kong’s wealthiest families and was described in the supplied report as distressed.
The available material does not provide further information about the family, the company’s financial position or the reasons for the proposed spin-off. The report also does not identify the precise K11 Shanghai properties included in the proposed REIT, give a timetable for the listing or state whether the offering has received approvals beyond the Shanghai Stock Exchange’s clearance. The transaction would separate the identified Shanghai assets into a listed real estate investment trust, subject to the remaining steps in the process.
New World’s statement is the source of the offering and proceeds estimates.
This independently written report is based on information supplied by the named publisher. Vertrix News has not independently verified the source report.