Grandjoy Holdings Group (00207.HK) announced that the proposed spin-off and sale of consumer infrastructure REIT will be listed separately on the Shenzhen Stock Exchange. All the prerequisites for the proposed spin-off have been met, and the Huaxia Grandjoy City Shopping Center Closed-End Infrastructure Securities Investment Fund ("REIT") was listed on the Shenzhen Stock Exchange on September 20, 2024, under the trading code 180603.SZ.
The REIT raised 1 billion shares, with a final offering price of RMB 3.323 per share. Based on the final offering price, the total amount of funds raised from the proposed listing is approximately RMB 3.323 billion. After deducting the subscription amount of the group's subscription fund and estimated costs and taxes, the net estimated proceeds received by the group from the proposed spin-off are approximately RMB 1.66 billion. The project company (an indirect wholly-owned subsidiary of the company) subscribed for 40% of the total issued shares as a strategic investor. Following the proposed spin-off, the company's indirect equity interest in the project decreased from 100% to approximately 40%, and the financial performance of the project is no longer consolidated into the group's financial statements.
The establishment and separate listing of the REIT provide another equity financing method for the company, diversifying the company's financing methods and platforms. Through the proposed spin-off, the company will be able to realize the value of mature properties, enhance its ability to make rolling investments, and improve the sustainable operation of the project, which is beneficial to the company's long-term performance. In addition, the proposed spin-off provides an opportunity for the group to enhance its image, expand its brand influence, and strengthen its ability to attract strategic investors.
