First public Reit oversubscribed

CHINA’S first public real estate investment trust received investor orders for about 1.6 times the amount of units being sold in its initial public offering. The closed-end real estate investment trust (Reit) managed by Penghua Fund Management received 4.9 billion yuan (R10.1bn) of subscriptions, after offering 3 billion yuan of units to investors, according to Yu Linbo, the fund’s Shenzhenbased public relations manager. The trust made up of office buildings from China Vanke was awaiting completion of industry and commerce registration before it started to trade on the Shenzhen stock exchange, Yu said. The China Securities Regulatory Commission in June granted approval for the first public sale of units by a Reit, allowing builders to look for alternative ways to make money from their investments. – Bloomberg