Deloitte assists follow-on public offering of Shekou Industrial Zone REIT on Shenzhen Stock Exchange

Deloitte China assisted the follow-on public offering of Bosera China Merchants Shekou Industrial Zone Close-End Infrastructure REIT (Shekou Industrial Zone REIT; trust code: 180101.SZ) on Shenzhen Stock Exchange on 16 June 2023. 

Shekou Industrial Zone REIT was among the 1st batch of public infrastructure REITs to list in the Chinese Mainland. It has now joined the 1st batch of public infrastructure REITs to make follow-on public offerings, marking the 2nd anniversary of its initial listing and illustrating once again its leading role in the development of the Chinese Mainland's REIT market.

In its follow-on offering, Shekou Industrial Zone REIT offered around 521 million units, raising about RMB1.24 billion in total. Shekou Industrial Zone REIT’s key assets now include the main cooperation project between the Shenzhen Municipal Government and China Merchants Group, the flagship layout project of China Merchants Shekou in Guangming District, and the second phase of the Science & Technology Accelerator project at China Merchants Guangming Science Park, Guangming District's most prominent gateway to the Guangzhou-Shenzhen-Hong Kong-Macao Science & Technology Innovation Corridor. 

The 1st batch of follow-on public offerings by publicly listed infrastructure REITs on the Shanghai and Shenzhen stock exchanges comprised four trusts that raised more than RMB 5 billion in total. This marks the full launch of China's follow-on public offering mechanism for infrastructure REITs and the formation of a pattern of "IPO + follow-on offering" in the REIT market, setting a new stage in REIT development that will create further opportunities.

^{Senior management and working teams on the follow-on public offering attend the Shekou Industrial Zone REIT follow-on public offering ceremony at Shenzhen Stock Exchange.}

About the client

Shekou Industrial Zone REIT was raised by Bosera Asset Management in accordance with the requirements of corresponding laws and trust contracts. The China Securities Regulatory Commission approved its registration and offering through Permit [2021] No.1664 on 17 May 2021. Bosera Asset Management is its fund manager and China Merchants Bank is its trustee. The Shekou Industrial Zone REIT comprises Wanrong Building and Wanhai Building in Shekou Net Valley and the second/first phase of the Science & Technology Accelerator project of China Merchants Guangming Science Park.

About the Deloitte service team

During preparation for the Shekou Industrial Zone REIT follow-on public offering, Deloitte China provided professional services including auditing the proforma financial statements of the REIT’s infrastructure projects and reviewing the calculation tables for its allotted funds. 

As a core service provider of Shekou Industrial Zone REIT, Deloitte China was deeply involved in assisting the initial and follow-on offerings of Shekou Industrial Zone, having accumulated precious professional experience in the Chinese Mainland's infrastructure REIT sector. 

During the project, Deloitte China's professional service engagement teams worked collaboratively, leveraging their vast professional expertise and industry experience and working prudently and diligently to deliver world-class services. The teams also worked with other intermediaries to resolve various difficulties encountered during the follow-on listing process. The effectiveness and quality of their work during both Shekou Industrial Zone REIT listings were highly recognized by China Merchants Shekou Industrial Zone and related intermediaries. 

The successful follow-on public offering of Shekou Industrial Zone REIT is another landmark in the capital market work of the Deloitte China real estate professional services team and the Capital Market Services Group for Chinese property enterprises, demonstrating Deloitte China's integrated capabilities in servicing the full value chain, from investment and financing to construction and management, for the infrastructure sector. 

Deloitte China is dedicated to providing clients with professional, high-quality services, helping more fund managers and original stakeholders make initial and follow-on offerings for their infrastructure REITs to forge ahead in a challenging macro-economic and capital market environment. This will underscore Deloitte China's leadership in offering services for infrastructure REITs. We also look forward to leveraging our experience and perspective in China and international markets to help more companies diversify their strategic layouts, expand their capital scale, and accumulate advantageous resources.