SEAZEN (01030) has announced that its subsidiary, Seazen Holdings Co., Ltd. (A-share code: 601155, listed on the Shanghai Stock Exchange), intends to spin off two of its commercial property projects into a Real Estate Investment Trust (REIT). The move aims to enhance the subsidiary's property management expertise, optimize its capital structure, and strengthen its core competitiveness and sustainable development capabilities.

On March 6, 2026, Seazen Holdings initiated the application process for publicly issuing a commercial property REIT, using its commercial real estate projects as underlying assets. The two projects designated as underlying assets for the REIT are: the Changzhou Tianning Wuyue Plaza project, held by Changzhou Seazen Hongxing Commercial Management Co., Ltd., and the Nantong Qidong Wuyue Plaza project, held by Qidong Yuebo Commercial Management Co., Ltd.

Wuyue Shunrui (Shanghai) Commercial Management Co., Ltd., a subsidiary of Seazen Holdings, will act as the original equity holder and submit the application for registration to the China Securities Regulatory Commission and the Shanghai Stock Exchange in accordance with relevant REIT policies. The application was accepted by regulators on March 6, 2026.

Seazen Holdings and Wuyue Shunrui will conduct internal restructuring of the project companies and related assets, ultimately transferring 100% equity of the project companies to a special purpose vehicle (SPV). The REIT will then acquire the equity of the SPV and list on the Shanghai Stock Exchange, with units available for subscription by investors.

Following all necessary approvals, the fund manager and financial advisor will proceed with the public offering. In accordance with Chinese laws and regulations, Seazen Holdings or its subsidiaries will participate in the strategic placement of REIT units, intending to subscribe to no less than 34% of the issued units. The REIT will be structured as a closed-end fund, with the final offering size determined based on the asset valuation of the target properties and market demand.

Professional institutional investors may participate in the strategic placement of fund units, with a mandatory holding period of no less than 12 months from the listing date. The remaining units will be offered through on-market and off-market subscriptions. The proposed plan may be adjusted based on regulatory requirements, application progress, and market conditions.

The issuance of the commercial property REIT represents a strategic effort by Seazen and its subsidiary to capitalize on supportive policies, leverage multi-tier capital market opportunities, and utilize innovative financing tools to optimize resource allocation in the real estate sector. This initiative is expected to broaden financing channels, revitalize existing assets, improve operational efficiency, and bolster long-term sustainable growth.