Zhitong Finance App News, Shanghai Industrial Holdings (00363) announced that Shanghai Industrial Holdings (00363), a non-wholly-owned subsidiary of the company, plans to implement REITs asset support securitization for the property through a special plan, with the aim of realizing the value of the Group's existing property assets, generating cash proceeds, optimizing the capital structure, and reducing the net debt ratio. The special plan is expected to raise approximately RMB 1,196 billion from investors through the issuance of approximately RMB 1,077 million in priority asset-backed securities and approximately RMB 119 million in secondary asset-backed securities.
The property is owned and operated by the target company (Shanghai Chengkai (Group) Wuxi Real Estate Co., Ltd.) in accordance with law, and will be a relevant asset for the special plan. The property is a landmark two-tower complex located in Wuxi, China, with a total construction area of about 1471,000 square meters, including Crowne Plaza Wuxi Taihu, Holiday Inn Express Wuxi Taihu Lake, Grade A office buildings, commercial facilities and apartments. The net operating income generated by the property (including rent, hotel turnover and other operating cash flows) will be injected into the special plan.
As one of the implementation steps of the special plan, on October 20, 2026, Shanghai Chengkai (as a subsidiary of Shangshicheng Kai holding 59% of the shares and an indirect subsidiary of the company) signed an equity transfer agreement with the plan manager acting on behalf of the special plan. According to the share transfer agreement, Shanghai Chengkai agreed to sell, and the plan manager (acting on behalf of the special plan) agreed to acquire all of the shares in the target company (holding the property) at a cash cost of RMB 396 million. The special plan (through the plan manager) will also provide a new loan of RMB 800 million to the target company. The amount will be used to repay the RMB 800 million shareholder loan owed by the target company to Shanghai Chengkai.
After the equity transfer agreement is completed, Shanghai Chengkai will no longer hold any shares in the target company, and the special plan will fully own the target company. The target company will no longer be a subsidiary of Shangshicheng Kai, and its financial results will no longer be incorporated into the Group's financial statements.
In addition, Shanghai Chengkai will carry out subscription matters. The total subscription amount will not exceed RMB 30 million, which is equivalent to about 25% of secondary asset-backed securities, and about 2.5% of the total issuance scale of the special plan. Except for subscription matters, it is anticipated that all asset-backed securities will be placed to independent third party investors. Shanghai Chengkai will also provide liquidity support, and Shanghai Chengkai (or its designated entity) will be granted priority purchasing rights.