China Overseas Land and Investment (0688) announced on Monday that China Asset Management Company (CAMC) and CITIC Securities (6030) submitted the application materials on the registration and listing of the public fund to the China Securities Regulatory Commission (CSRC) and the Shenzhen Stock Exchange.
The underlying asset of the real estate investment trust (REIT) is one shopping mall located in Foshan, Guangdong province, China. It is owned by Foshan China Overseas Unipark Commercial Management, a subsidiary of the company.
For the purpose of the proposed spin-off, CAMC, as the public fund manager, will set up the public fund as a publicly-listed real estate securities investment fund and will be responsible for its management and administration. It is currently expected that the public fund will raise 1.53 billion yuan (HK$1.78 billion). At the time of the proposed listing, the group will subscribe for 20 percent of the units in issue.
After the launch of the public fund, it will take up all interests in the asset-backed special purpose plan (ABS), which will use the raised capital to purchase the full stake in the Foshan China Overseas Unipark Commercial Management from China Overseas.
Once the acquisition completes, the REIT will fully own the firm, which will no longer be a China Overseas subsidiary.
Frank Feng
