New World Development bags Shanghai bourse nod for $570 million REIT listing

Hong Kong-based New World Development has secured approval from the Shanghai Stock Exchange for the listing of its real estate investment trust (REIT) in Shanghai, with an expected offering size of 3.82 billion yuan (US$570.36 million). According to the company, it plans to subscribe for 20% of the total units at listing, while external investors will take the remaining 80% for an aggregate 3.05 billion yuan.

The transaction includes the sale of the holding company of Shanghai Hong Kong New World Tower to the newly listed REIT for 4.01 billion yuan, generating net proceeds of 3.24 billion yuan for New World. The REIT listing aims to help the company refinance debt and improve liquidity, as the Hong Kong property sector has been facing challenges.

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