Shui On Plans Xintiandi Listing by End-2016, Sells More Assets

Shui On Land Ltd., controlled by Hong Kong billionaire Vincent Lo, is seeking to list its China Xintiandi commercial property unit in the next 18 months while it continues asset sales to cut debt.

The subsidiary, which holds retail and office complexes in cities including Shanghai, “is refining its business strategy,” Shanghai-based Shui On said in its annual results statement. The asset sales will include some from China Xintiandi, it said.

Shui On has been talking about spinning off China Xintiandi since 2012 to allow the company to focus on property development. Lo, who resumed a more active role in the business last year, has been selling assets to improve Shui On’s cash position. The company unexpectedly posted an underlying loss of 85 million yuan ($13.6 million) in 2014, from a profit of 869 million yuan a year earlier, according to Wednesday’s filing.

Shui On sold hotel assets in the Xintiandi entertainment complex in Shanghai to Hong Kong-based property firm Great Eagle Holdings Ltd. in July. It said at the time it doesn’t have an advantage in operating hotels. Great Eagle is led by Lo’s brother Lo Ka Shui.

Brookfield Property Partners, a New York-based commercial real estate operator that agreed to invest $500 million in China Xintiandi, completed its initial investment and has appointed two senior managing directors to the unit’s board, Shui On said in the Wednesday statement.

Shui On shares jumped 3 percent to HK$1.70 in Hong Kong on Wednesday.

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