Chinese retail mall owner Beijing Hualian Group (BHG) is looking to list its malls in a Singapore real estate investment trust (Reit) on Singapore Exchange (SGX). If successful, it would be Singapore’s first Real Estate Investment Trust (Reit) listing this year, as several deals were halted due to concerns over uncertain financial markets, local media reported on Monday.
Beijing Hua Lian Group (Singapore) International Trading, as a strategic investor, has agreed to subscribe for about 148 million units, while Beijing Hualian Mall (Singapore) Commercial Management (BHG Singapore), has agreed to subscribe for 24.64 million units, according to Channel NewsAsia.
The firm has already attracted four cornerstone investors, China Hi-Tech Holding Company, China Life Insurance Company, China Merchants Bank Asset Management and Dr Chanchai Ruayrungruang, who together will subscribe for over 169.65 million shares.
Separately, the IPO plans to sell 150.1 million units under the placement at 0.80 Singapore dollar a piece to institutional and retail investors, with initial public offering at 120 million Singapore dollars.
The funds raised will help the Reit to acquire the five malls from the sponsor that would make up its initial portfolio.
The public offer is scheduled to open on Dec. 2 and trading will begin on Dec. 11.