Shimao City Development Says Potential REIT Listing Remains At Early Stage

Shimao City Development (00563) said reports that the Shanghai Stock Exchange has received an application involving the listing of certain group assets, including a subsidized rental housing portfolio, as a real estate investment trust are premature, according to ETNet. The company said the possible transaction is still at an initial and exploratory stage and is only one potential way for shareholders to realise value. It is assessing the possible structure and feasibility of the deal, including whether to proceed with a REIT listing, a direct sale or disposal, or another alternative structure, as well as the assets or businesses involved, potential counterparties or sponsors, indicative timing and key terms. Shimao City Development said the transaction may or may not proceed and remains subject to negotiation and execution of final documents, required regulatory and government approvals, and market conditions. It said further announcements will be made in due course.