Beijing Hualian Group set to list REIT in Singapore
November 24th, 2015
China’s Beijing Hualian is set to be the first mainland company to list a real estate investment trust (REIT) in Singapore. The deal will be the first IPO deal on Singapore Exchange this year, and it will also make BHG the first mainland Chinese company for an overseas REIT deal.
BHG Retail Trust Management said it has lodged a preliminary prospectus for BHG Retail REIT with the Monetary Authority of Singapore for an offering on the main board of the Singapore Exchange.
BHG Retail REIT plans to sell a total of 150.13 million units through placement and to institutional and retail investors at SGD 0.80 each to raise around SGD 120 million.
BHG Retail REIT's initial portfolio will comprise five retail properties in China with an aggregate GFA of approximately 263,688 square metres.
In addition, Beijing Hua Lian Group (Singapore) International Trading has come on board as a strategic investor, agreeing to subscribe for 148,310,300 units, while Beijing Hualian Mall (Singapore) Commercial Management (BHG Singapore), has agreed to subscribe to 24,636,300 units. These cornerstone investors will subscribe for a combined 169,651,000 units. Altogether, BHG Retail REIT plans to raise gross proceeds of SGD 394.2 million. DBS is the financial adviser, issue manager, bookrunner and underwriter for the proposed listing, while China International Capital Corporation is lead manager.
Beijing Hualian Group's Supermarket in Beijing China