China Merchants’ development arm announced the group’s proposal to expand into real estate investment trust management in Hong Kong, having applied with local regulators this week.
According to a simplified Chinese announcement, Hong Kong-listed China Merchant Land has submitted an application for accreditation with the Securities and Futures Commission and upon approval will seek to list its real estate investment trust (REIT), China Merchants Commercial REIT (CMC REIT), on the exchange.
The group plans to inject five properties into CMC REIT which includes four commercial properties located in the Nanshan District of Shenzhen, a southern area near Hong Kong, alongside one shopping mall property.
In the first half of 2019, China Merchants Land posted profits of 528 million Chinese yuan ($74 million), nearly a 35 percent year-on-year drop.
