China Merchants Commercial REIT raises $327.2m in HK public offering

Commercial buildings stand illuminated at dusk in Hong Kong, China, on Thursday, Dec. 27, 2018. Photographer: Justin Chin/Bloomberg

China Merchants Commercial real estate investment trust (REIT) has raised $327.2 million in a public offering in Hong Kong, after pricing the deal at HK$3.42, said two people with knowledge of the matter.

The transaction ends a six-year listing drought for REITs in Hong Kong, which have increasingly turned to the Singapore Stock Exchange as their primary listing base.

Spring REIT was the last company of its kind to list in Hong Kong when it raised $216 million in 2013, according to Refinitiv data.

China Merchants Commercial told prospective investors last week it planned to issue 750 million units priced between HK$3.42 and HK$4 ($0.44-$0.51) each, which would raise $330 million to $380 million.

The size of the deal was shrunk after potential investors were told the shares would be priced at the lower end of the guidance range.

The sources could not be named because the information has not yet been made public.

A greenshoe option of 5% of units on top of the initial deal could lift the offering size to $343.5 million.

The units will start trading on Dec. 10, according to a termsheet seen by Reuters.

Citigroup led the deal as the sole listing agent and was the joint global co-ordinator alongside China Merchant Securities and DBS.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.