New World Development Wins SSE Nod for Shanghai REIT Spin-Off
New World Development has received Shanghai Stock Exchange approval to spin off a REIT backed by its Shanghai Huaihai property project.
New World Development Company Limited said the Shanghai Stock Exchange has approved its proposed spin-off, clearing the way for the Hong Kong-listed developer to proceed with the transaction.
The exchange confirmed on September 19, 2026, that the company may move ahead with the plan, which centres on a real estate investment trust to be listed in Shanghai.
Under the proposal, New World Development's indirect interest in the project company will fall from 100% to 20% once the spin-off is completed. The group is expected to subscribe for 20% of the total units of the REIT in issue at the time of the proposed listing, at an expected aggregate subscription price of RMB764 million.
The asset being disposed of is Shanghai New World Huaihai Property Development. The consideration for the disposal is expected to be RMB4,014 million, while the REIT offering on the Shanghai exchange is expected to be sized at RMB3,818 million.
New World Development estimated that the group will receive net proceeds of about RMB3,240 million from the proposed spin-off.