China Overseas Land & Investment announced on September 7 that it has submitted registration and listing applications for the ChinaAMC China Overseas closed-end commercial real estate securities investment fund to the China Securities Regulatory Commission and the Shenzhen Stock Exchange through China Asset Management and CITIC Securities, planning to list the Foshan Qiandeng Lake UniPark project independently on the Shenzhen Stock Exchange as a commercial real estate REIT. The underlying asset of the REIT is a shopping centre in Nanhai District, Foshan, with total expected proceeds of about 1.534 billion yuan, and China Overseas Land & Investment will subscribe for about 20 percent of the fund units at listing. After the transaction is completed, the REIT will hold 100 percent equity in the project company and will not be consolidated into China Overseas Land & Investment's financial statements. This is already the second REIT project under China Overseas, following its first, the ChinaAMC China Overseas Consumer REIT, which listed on October 31 last year with Yingyue Lake UniPark as the underlying asset. Interim results showed that REIT recorded operating revenue of 63.4976 million yuan, net profit of only 145,100 yuan, distributable amount of 33.476 million yuan, actual distribution of 29.454 million yuan, and a distribution ratio of 87.98 percent, below the annual commitment of no less than 90 percent. The board of China Overseas Land & Investment believes that issuing REITs helps revitalise consumer assets, with proceeds available for acquisitions, debt repayment and replenishing working capital, while reducing reliance on debt financing.
China OverseasPlans to list Foshan Qiandeng Lake UniPark as a REIT raising ~1.534bn yuan, with proceeds for acquisitions, debt repayment and working capital while reducing reliance on debt financing.
COLI REIT
CITIC Securities Co Ltd
China Merchants Securities Co Ltd