CHINA Merchants Shekou Industrial Zone Holdings Co. is planning an initial public offering of a real estate investment trust (REIT) in Hong Kong, the city’s first REIT listing in five years, according to people with knowledge of the matter.

The firm has engaged potential advisers for the share sale and aims for a listing as soon as this year, the people said. The share sale could raise about US$800 million, the people said.

China Merchants Shekou’s offering would be the first REIT listing in Hong Kong since Spring Real Estate Investment Trust raised US$216 million in 2013. By comparison, the Singapore stock exchange, which brands itself as a regional hub for these listings, has hosted 18 REIT IPOs in the last five years.

Deliberations are at early stage and details of the IPO plan including timeline and fundraising size could still change, the people said. A representative for China Merchants Shekou didn’t immediately respond to requests for comment.

China Merchants Shekou develops and manages commercial and residential properties as well as operating cruise and port businesses, according to its website. The company has property projects across nearly 60 cities in China as well as in New Zealand and Belarus, its website shows.

China Merchants Shekou posted a net income of 13.9 billion yuan (US$2 billion) for 2018, up from US$12.8 billion a year ago, according to its annual report. (SD-Agencies)