CapitaLand, the largest property developer in Southeast Asia, plans to spin off its Chinese projects into two mainland-listed real estate investment trusts (Reits) upon approval of the Reits’ listing, according to Liew Mun Leong, President and CEO of CapitaLand.
Developers are waiting for China’s authorities to establish listing guidelines for Reits, which is viewed as the next stage of development in China’s property market.
Liew noted that the process may occur “within the next three to five years, for sure.”
Recently, CapitaLand Chief Operating Officer, Lim Ming Yan, said the company is considering spinning off its China projects worth US$5.3 billion (S$6.79 billion) into a Reit.
Liew explained that the divestment plan would involve assets held both by CapitaLand and CapitaMalls Asia. These companies would create two Reits listed on the mainland.
“One is just purely for malls, and then it is very clear where the income stream, and one that is mixed development, with office and retail and residential and malls.”
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