A view shows the headquarters of New World Development at New World Tower, in Hong Kong, China September 27, 2024. REUTERS/Tyrone Siu

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

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Sept 21 : Hong Kong's New World Development said on Monday the Shanghai Stock Exchange had approved the spinoff and listing of its REIT for an expected offering size of 3.82 billion yuan ($570.36 million).

Here are the details:

• The company said it expects to subscribe for 20 per cent of the total units at listing, while external investors would take the remaining 80 per cent for an aggregate 3.05 billion yuan.

• As part of the transaction, New World will sell the holding company of Shanghai Hong Kong New World Tower to the newly listed REIT for 4.01 billion yuan.

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• New World expects to generate net proceeds of 3.24 billion yuan from the asset sale and the purchase of 20 per cent stake in the REIT.

• The REIT listing comes as New World seeks to refinance debt ⁠and bolster liquidity amid weakness in Hong Kong's property sector.

• Blackstone walked away from a proposed $4 billion tie-up with New World after the property developer refused to cede control, Bloomberg News reported in May.

($1 = 6.6975 Chinese yuan)

Source: Reuters

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