China regulator grants approval for first public Reit offering
[SHANGHAI] China's securities regulator granted approval for the first public sale of units by a real-estate investment trust, broadening the financing channels for developers facing a prolonged housing market slump.
The China Securities Regulatory Commission on Monday approved the Reit managed by Penghua Fund Management which will list in Shenzhen following the offering, according to a person at the company who asked not to be identified. The trust will be made up of commercial properties from China Vanke Co in the southern city of Shenzhen and receive cash flows from rental income, the developer said in an e-mailed statement.
Chinese developers are looking to raise cash as home sales remain weak after a more than yearlong housing market slump. China Resources Land Ltd and Evergrande Real Estate Group Ltd are among listed Chinese homebuilders that raised funds in Hong Kong through share sales last month.
Vanke has been exploring different asset management models, including REITs, Vanke President Yu Liang said at a May 14 briefing in Beijing. The builder tapped the bond market in December after regulators allowed more property companies to access the onshore note market.
BLOOMBERG
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Property
Blackstone strikes US$1.6 billion student housing deal with KKR
European real estate deals slump to lowest level in 13 years
Singapore Q1 industrial rents rise further as occupancy dips and prices fall: JTC
Condo resale volumes rebound in March; prices inch up 0.4%: SRX, 99.co
S$16.5 million deal at The Ritz-Carlton Residences tops Q1 gainers; seller reaps S$4.9 million profit
Lucrum Capital looks to sell Killiney hotel site for S$195 million