China Merchants Shekou Plans $800 Million REIT IPO in Hong Kong

China Merchants Shekou Industrial Zone Holdings Co. is planning an initial public offering of a real estate investment trust in Hong Kong, the city’s first REIT listing in five years, according to people with knowledge of the matter. The company has engaged potential advisers for the share sale and aims for a listing as soon as this year, the people said, asking not to be identified because the information is private. The share sale could raise about $800 million, the people said. China Merchants Shekou’s offering would be the first REIT listing in Hong Kong since Spring Real Estate Investment Trust raised $216 million in 2013, according to data compiled by Bloomberg. By comparison, the Singapore stock exchange, which brands itself as a regional hub for these listings, has hosted 18 REIT IPOs in the last five years, the data show. Deliberations are at early stage and details of the IPO plan including timeline and fundraising size could still change, the people said. A representative for China Merchants Shekou didn’t immediately respond to requests for comment.