Real Estate Author: EqualOcean News, Nan Tang Editor: Xiwen Zheng May 07, 2021 11:48 AM (GMT+8)

The stock price will range between HKD 4.68 to HKD 5.16 with the intention being to sell a total of 520 million units.

SF Express

China's largest courier service company, SF Holdings, announced on May 5 the listing of an offshore real estate investment trust, Reit Logistics in Hong Kong planning to raise as much as HKD 2.68 billion. The company expects to start trading on the main board of the stock exchange on May 17, with a share price as high as HKD 5.16.

SF Holdings is injecting three valuable logistics properties into the new entity to free up cash from its assets, including the Asia Logistics Hub-SF Centre in Hong Kong, a warehousing and distribution centre in Anhui, and a distribution centre in Guangdong. These properties are strategically located in the leading logistics hubs in Hong Kong and mainland China, adjacent to the main airports, seaports, railways, expressways and transportation hubs, with a total value of CNY 6.1 billion.

The CEO of Reit logistics, Hubert Chak, told the press that the company has introduced two cornerstone investors, state-owned China Orient Asset Management and a Canada-based investment fund, with a total investment scale of about USD 50 million, accounting for around 15% of the whole issue.

Chak also revealed that the establishment of the new company is a fundamental back stone for SF Holdings' future financing plan. As an international financial center, Reit logistics would be a preeminent financing platform for the mother company. Going through its historical performance, the firm earned about HKD 255 million (CNY 212 million), HKD 269 million (CNY 224 million), and HKD 279 million (CNY 232 million) in 2018, 2019 and 2020 respectively.

In the future, the real estate investment trust will not only be an essential fundraising channel for SF Holdings but also be a stepping stone to help it to enter the Hong Kong courier service industry.

SF ExpressinvestmentSF HoldingsSF listedShunfeng Housing Trust