Shanghai Industrial Urban Development Plans 1.2 Billion Yuan Quasi-REITs Securitization

MT Newswires Live10-21 11:42

Shanghai Industrial Urban Development Group (HKG:0563) plans to raise about 1.20 billion yuan through a quasi-REIT asset-backed securitization of a property complex in Wuxi, China, according to a Tuesday Hong Kong bourse filing.

Its 59%-owned subsidiary agreed to sell the entire equity interest in Shanghai Chengkai (Group) Wuxi Property for 396 million yuan.

The special plan will also provide the target with an 800 million yuan loan to repay its existing shareholder loan.

The transaction is expected to increase the group's cash balances and reduce net debt by about 1.17 billion yuan, while generating an unaudited disposal gain of about 55 million yuan.

Upon completion, the target will cease to be a subsidiary and its results will no longer be consolidated.

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