$HUI XIAN REIT (87001.HK)$$SOHO CHINA (00410.HK)$$SHIMAO GRO...

3 reasons why HuiXian REIT will be strongly re-rated

1) Prime Grade A office rents in central Beijing are set to recover due to a lack of new supply and higher demand as new companies are formed and hiring increases

Vacancy rates are currently 21% and this figure is set to decline in the next 12 months as more stimulus comes on stream

2) In 2015, the average rents for Grade A office space in Beijing is 295RMB/SQM

As of 1H24, Average rentals in Oriental Plaza Beijing for office space is around 263rmb/SQM

With vacancy averaging at 20% , there is room for massive upside. There is no Work from Home culture in China and workers like to come to office because the office looks nicer than their houses

3) Golden week data from trip.com shows that people from 1st tier cities are making inroads to 2nd and 3rd tier areas while those in 2nd and 3rd tier cities are visiting Beijing and Shanghai or making overseas trips

this trend is beneficial to HuiXian REIT portfolio of hotels