BHG Retail REIT opens flat in trading debut

Trading volumes are lacklustre.

BHG Retail REIT opened flat in its Mainboard debut, trading at its IPO price of $0.80 cents as of 3:30 PM.

BHG Retail REIT is the first Mainboard listing in 2015 and is sponsored by Beijing Hualian Department Store Co., Ltd., an established retail property operator in China. The REIT will primarily invest in a portfolio of shopping malls located in China’s key cities which are business hubs in their respective regions.

Its initial portfolio comprises five retail properties located in Beijing, Chengdu, Dalian, Hefei and Xining, with an aggregate gross floor area of 263,688 square metres and total appraised value of RMB2.8 billion (S$605.9 million) as at 30 June 2015.

Its IPO raised $394.2m from its IPO, which was made up of a public offering as well as investments from four cornerstone investors.

The listing of BHG Retail REIT brings the total number of REITs and property trusts listed on SGX to 39 with a market capitalisation of more than S$65 billion.