BRIEF: GDS to separately list data center real estate assets as a REIT
Data center operator GDS Holdings Inc. (GDS.US; 9698.HK) said on Thursday that it plans to spin off and separately list its real estate assets as a real estate investment trust (REIT) on the Shanghai Stock Exchange. It added that the stock exchange and China’s securities regulator have already approved the plan.
GDS said it will subscribe to 20% of the units to be issued by the REIT, while the remaining 80% will be sold to institutional and retail investors. It said cornerstone institutional investors have already agreed to buy 50% of the units being sold, with lockup periods of one to three years.
The REIT’s data center assets have an appraised valuation of 1.93 billion yuan ($269 million), GDS said, adding that the transaction is expected to close within the next few weeks. GDS’ U.S.-listed shares rose 3.3% on Thursday and are up 26% so far this year. The company’s Hong Kong-listed stock closed up 4.1% by the midday break on Friday.
By Doug Young
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