Shanghai-based property investor, KaiLong Real Estate Investment, is looking to list a REIT in Singapore that will comprise of Chinese business parks properties, the Wall Street journal reported on 30 April citing unnamed sources. According to a listing of the assets on the company’s website, KaiLong currently manages a portfolio of three business parks and several other office, retail and residential properties across China. The company was founded in 2004 and said to have invested in 24 real estate projects worth RMB8.4 billion (USD1.36 billion) over the years, 12 of which has been diversified, said the company on its website. Kailong is said to have appointed Standard Chartered Bank at its advisors for the listing which will be valued at USD1 billion (USD757 million). Both Kailong and Standard Chartered have yet to comment on enquiries on the matter. Comment News of KaiLong supposedly considering a REIT listing in Singapore comes at an interesting time given prevailing economic conditions in China and the anticipation of interest rate hikes. REITs listings in Singapore have become relatively muted in the immediate past quarters compared to 2013 and 2014. Impending interest rate hikes in the US and Singapore have diminished the appeal of REITs considerably. At least two other property developers which were thought to have considered a REIT listing in Singapore, Singapore-based CDL and South Korean group Lotte, have gone silent on these supposed plans.A KaiLong business park property in Shanghai, Jinqiao L7, a possible property in a REIT that could be listed in Singapore.

Shanghai-based property investor, KaiLong Real Estate Investment, is looking to list a REIT in Singapore that will comprise of Chinese business parks properties, the Wall Street Journal reported on 30 April citing unnamed sources.

According to a listing of the assets on the company’s website, KaiLong currently manages a portfolio of three business parks and several other office, retail and residential properties across China.

The company was founded in 2004 and said to have invested in 24 real estate projects worth RMB8.4 billion (USD1.36 billion) over the years, 12 of which has been diversified, said the company on its website.

Kailong is said to have appointed Standard Chartered Bank at its advisors for the listing which will be valued at USD1 billion (USD757 million). Both Kailong and Standard Chartered have yet to comment on enquiries on the matter.

News of KaiLong supposedly considering a REIT listing in Singapore comes at an interesting time given prevailing economic conditions in China and the anticipation of interest rate hikes.

REITs listings in Singapore have become relatively muted in the immediate past quarters compared to 2013 and 2014. Impending interest rate hikes in the US and Singapore have diminished the appeal of REITs considerably.

At least two other property developers which were thought to have considered a REIT listing in Singapore, Singapore-based CDL and South Korean group Lotte, have gone silent on these supposed plans.

Shanghai-based property investor, KaiLong Real Estate Investment, is looking to list a REIT in Singapore that will comprise of Chinese business parks properties, the Wall Street journal reported on 30 April citing unnamed sources. According to a listing of the assets on the company’s website, KaiLong currently manages a portfolio of three business parks and several other office, retail and residential properties across China. The company was founded in 2004 and said to have invested in 24 real estate projects worth RMB8.4 billion (USD1.36 billion) over the years, 12 of which has been diversified, said the company on its website. Kailong is said to have appointed Standard Chartered Bank at its advisors for the listing which will be valued at USD1 billion (USD757 million). Both Kailong and Standard Chartered have yet to comment on enquiries on the matter. Comment News of KaiLong supposedly considering a REIT listing in Singapore comes at an interesting time given prevailing economic conditions in China and the anticipation of interest rate hikes. REITs listings in Singapore have become relatively muted in the immediate past quarters compared to 2013 and 2014. Impending interest rate hikes in the US and Singapore have diminished the appeal of REITs considerably. At least two other property developers which were thought to have considered a REIT listing in Singapore, Singapore-based CDL and South Korean group Lotte, have gone silent on these supposed plans.
A KaiLong business park property in Shanghai, Jinqiao L7, a possible property in a REIT that could be listed in Singapore.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.