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Shui On Land Files for Xintiandi IPO in HKEx, Commercial Property Value is Expected to be Released

Hongkong EN 1530

Shui On Land took the first formal step towards the long-sought IPO of its Xintiandi division on 13 September as it submitted the application for listing on the Hong Kong stock exchange. Xintiandi property portfolio consists of urban renewal commercial properties situated in Shanghai, Wuhan, Nanjing´╝îFoshan and Chongqing.  As of 30 June 2021, the total GFA of Shui On Xintiandi is about 2 million square metres, 64.4% and 35.6% of which are retail and office properties respectively.

Colliers View:

Limited land supply in the core cities has gradually shifted the commercial properties revenue model from strata title sales to operational rental income. The new revenue model would require the developers and operators to develop strong competence in operation strategy, asset management, as well as real estate financing. As the overall asset value of commercial properties in the core cities has been stably growing, it is estimated that more and more developers and operators might follow the same path to realize the asset value.