Gelonghui May 24 | Joy City Real Estate (00207.HK) issued an announcement. On May 24, 2024, Huaxia Fund and CITIC Securities have submitted application materials for consumer infrastructure REIT registration and listing to the China Securities Regulatory Commission and the Shenzhen Stock Exchange.
The proposed spin-off involves the project company Zhuoyuan Real Estate (Chengdu) Co., Ltd. (an indirect wholly-owned subsidiary of the company) transferring all of the shares of the new project company (holding the project) to the consumer infrastructure REIT, and the project company subscribing to 40% of the total consumer infrastructure REIT fund share. The project includes a shopping center and parking space located on Dayue Road, Wuhou District, Chengdu, China. As of the date of this announcement, all rights are held by the new project company. After the proposed spin-off is completed, the consumer infrastructure REIT will indirectly hold all of the rights in the project, and the company will indirectly hold 40% of the total consumer infrastructure REIT fund share through the project company, and the company's indirect equity in the project will be reduced to 40%. Therefore, once the proposed spin-off is completed, the financial results of the project will no longer be consolidated into the Group's financial statements.
