China’s HNA Seek Listing Overseas Properties in Singapore

China’s HNA Group is set to list Commercial Reit in Singapore, seeking raising SGD775 million. The commercial real estate investment trust is likely to be the biggest IPO this year, back by assets from Australia and the UK.

HNA Commercial REIT is expected to have an estimated issue size of SGD775 million in its upcoming initial public offering, according to documents seen by Singapore media. Based on documents seen by media, the IPO portfolio will comprise five properties, with 46% of the portfolio in Australia, 27% in the UK, and 26% in Singapore.

 

According to reports, the Shenzhen-listed HNA Investment Group is looking to become the biggest shareholder in the REIT, with plans to hold a stake of at least 35%.

 

The group will also own a 75% stake in the REIT manager, HNA-A EP REIT Management, which was formed in partnership with Singapore-based property fund management firm AEP Investment Management.

 

Two of properties — StarHub Green in Ubi with an occupancy of 94.7%; and 41 George Street in Brisbane which is 99.8% occupied — are from Basil Property Trust, which is managed by AEP.

 

A third property, Trident Place Business Park, Hatfield, which is 100%-occupied, is from AEP’s UK Separate Account Fund.

 

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