The Chinese authorities announced in March that China Real Estate Investment Trusts (C-REITs) would be expanded to include consumer infrastructure.
Property developer Longfor Group pays close attention to the policy and has been communicating with the National Development and Reform Commission (NDRC) and the China Securities Regulatory Commission (CSRC) and is making preparations for the separation of its assets, said CFO Zhao Yi.
However, as the residential portion of its projects is required to be sold completely before they can be packaged into issuable C-REITs, and as many of the group’s projects are mixed developments, it will take some time for the sales of residential units to be completed and the projects to be fully separated, he said.
A number of the group’s shopping malls will meet the issuance threshold in the next one to two years, thereby realising capital appreciation, he said.