Maoye International (00848) announced that its subsidiary, Maoye Commercial Co.,Ltd. (600828.SH), plans to use certain buildings within the Chengdu Maoye Center, located at No. 28 North Section of Tianfu Avenue, Chengdu High-tech Zone, as the underlying asset for the application and issuance of a public REIT for commercial real estate. The properties are held by Maoye Commercial's wholly-owned subsidiary, Chengshang Group Holdings Co., Ltd., and its affiliate, Chengdu Chongde Investment Co., Ltd. The specific assets involved are subject to final regulatory approval.

Simultaneously, Maoye Commercial and its affiliate intend to jointly invest and participate in the strategic placement of the REIT shares to be issued, subscribing for approximately 34% of the total fund shares offered, though the final subscription amount is yet to be determined.

This initiative by Maoye Commercial to launch a public REIT for commercial real estate is expected to effectively revitalize its existing assets. By leveraging such innovative financial products, Maoye Commercial can attract social capital to participate in the investment and construction of new projects, thereby further broadening its financing channels.

As an equity-based financing instrument, public REITs for commercial real estate can unlock the intrinsic value of mature commercial properties. This move is anticipated to optimize Maoye Commercial's capital structure, improve its financial condition, and reduce its financial leverage ratio.