Deloitte China assists listing of CM Fund Shekou Rental Housing REIT on SZSE

Deloitte China has successfully assisted the listing of the China Merchants Fund China Merchants Shekou Rental Housing Closed-End Infrastructure Securities Investment Fund (CM Fund Shekou Rental Housing REIT, fund code: 180502) on the Shenzhen Stock Exchange (SZSE), with trading commencing on 23 October 2024.

CM Fund Shekou Rental Housing REIT has become the 3rd REIT for China Merchants Shekou Industrial Zone Holdings Co. (China Merchants Shekou), following the China Merchants Commercial Real Estate Investment Trust (CMC REIT, stock code: 01503.HK) and Bosera China Merchants Shekou Industrial Zone Closed-end Infrastructure Fund (Shekou Industrial Zone, fund code: 180101). It further facilitates the integration of the real estate company’s development model cycle of “investment, financing, construction, management, and exit” of an investment and financing mechanism.

The listing ceremony of CM Fund Shekou Rental Housing REIT at Shenzhen Stock Exchange

(From left) Cloris He, Southern Region Offering Services partner of Deloitte China’s Capital Market Services Group (CMSG); Eleanor Xu, Audit & Assurance (A&A) partner and Yulia Yu, A&A manager attend the listing ceremony of CM Fund Shekou Rental Housing REIT

Client overview

CM Fund Shekou Rental Housing REIT received registration approval from the China Securities Regulatory Commission on 30 August 2024, with China Merchants Fund Management Co. (China Merchants Fund) acting as the fund manager. The CM Fund Shekou Rental Housing REIT holds the Taiziwan Project and the Linxia Project. Properties of both projects are located in the Nanshan District of Shenzhen in Guangdong Province. The Taiziwan Project is classified as government-subsidized rental housing, and the Linxia Project is categorized as public rental housing.

Deloitte’s role

As a core intermediary, Deloitte China was deeply involved in the entire listing process of the CM Fund Shekou Rental Housing REIT, providing professional services including auditing the proforma financial statements of the infrastructure projects, reviewing the calculation tables of its allotted funds, and auditing the delivery financial statements of the infrastructure projects.

During the project, the professional service team from Deloitte China worked collaboratively, leveraging their vast professional expertise and industry experience, and working prudently and diligently to deliver world-class services. The team also worked with other intermediaries to resolve various difficulties encountered during the listing process and completed the work with high efficiency and quality. Their efforts were highly regarded by the issuer, the fund manager, and other intermediaries.

Deloitte contributes to professional expertise in listing infrastructure REITs

Since the launch of publicly traded infrastructure REITs in China three years ago, Deloitte China has been the leader in professional services for such entities. Following our assistance in the initial public offerings of Hua’an Zhangjiang REIT, Shekou Industrial Park REIT, Guojin Railway Construction Chongqing Suining Expressway REIT, and China AMC Huarun Youcha REIT, and the expansion of Shekou Industrial Park REIT, Deloitte China has also assisted the listings of ICBC Hebei Expressway REIT and China AMC Shenzhen International REIT in the past year.

We congratulate CM Fund Shekou Rental Housing REIT on its successful debut on SZSE. We will continue to provide high quality professional services and outstanding resources integration to assist more clients to take one-step ahead in today's increasingly competitive and complex business environment.