China Resources Longdation, a property arm of state-owned conglomerate China Resources, plans to raise between US$500 million and US$1 billion in a Hong Kong initial public offering (IPO), according to three sources with direct knowledge of the matter.
The company has appointed China International Capital Corporation (CICC), Citigroup and JPMorgan to work on the real estate investment trust (REIT) share sale, the sources added.
The sources declined to be named because the information was confidential. China Resources did not immediately respond to a request for comment.
The Nine Dragon Wall at the China Resources Buildings in Wan Chai
Citigroup and JPMorgan declined to comment, while CICC did not respond to a request for comment.
China Resources Longdation, which was previously known as China Resources Property, is considering conducting the IPO in 2024 or 2025, two of the sources said.
The prospect of higher interest rates for longer as inflation remains elevated in many parts of the world has battered REITs trading in major markets.
IFR first reported China Resources Longdation’s Hong Kong IPO plans on Thursday.
