China retail giant Beijing Hualian plans Singapore REIT listing

Chinese retail giant Beijing Hualian looks set to be the first mainland company to list a real estate investment trust (REIT) in Singapore, following the filing of a draft prospectus by one of its units.

BHG Retail Trust Management said on Monday (Nov 23) that 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 S$0.80 each to raise around S$120 million.

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.

BHG Retail REIT has also found four cornerstone investors, China Hi-Tech Holding Company, China Life Insurance Company, China Merchants Bank Asset Management and Dr Chanchai Ruayrungruang.

These cornerstone investors will subscribe for a combined 169,651,000 units.

Altogether, BHG Retail REIT plans to raise gross proceeds of S$394.2 million.

BHG Retail REIT’s initial portfolio will comprise five retail properties in China with an aggregate GFA of approximately 263,688 square metres. DBS is the financial adviser, issue manager, bookrunner and underwriter for the proposed listing, while China International Capital Corporation is lead manager.

Beijing Hualian is one of the largest operator of department stores and supermarkets in China.

Source : Channel NewsAsia – 23 Nov 2015

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