Huaxia Huaren Commercial Asset REIT Expands Portfolio with Suzhou Project Acquisition

Huaxia Huaren Commercial Asset REIT, managed by Huaxia Fund, has announced plans to expand its portfolio by acquiring the Suzhou Kunshan Wanxiang Hui project. The fund, with the code 180601, aims to raise funds through an expansion offering to subscribe to all units of the CITIC Securities-Huaren Commercial Asset No. 2 Asset Support Special Plan, ultimately investing in the Suzhou Kunshan Wanxiang Hui project. The primary source of funds for this acquisition is the proceeds from the expansion offering.

The Suzhou Kunshan Wanxiang Hui project is located in Kunshan City, Suzhou, Jiangsu Province. As of June 30, 2024, the fund's net asset value per share was 6.8573 yuan, with a total of 1 billion shares, total assets of 85.68 billion yuan, total liabilities of 17.11 billion yuan, and total equity of 68.57 billion yuan. The project is operating well overall, with stable cash flow. The acquisition of the Suzhou Kunshan Wanxiang Hui project will expand the fund's coverage of consumer infrastructure in different cities, effectively dispersing the fund's asset portfolio risk. This move is beneficial for expanding the consumer infrastructure assets held by the fund. The project is managed by Huaren Commercial Asset and Huaren Investment, which were appointed as the operating management institutions.

This expansion and acquisition plan is part of a broader trend in the public REITs market, which has seen increased activity and new issuances. The Suzhou Kunshan Wanxiang Hui project is a significant addition to the fund's portfolio, enhancing its diversification and risk management strategies. The fund's decision to invest in this project reflects its confidence in the stability and growth potential of the consumer infrastructure sector. The acquisition is expected to further strengthen the fund's position in the market and provide investors with a diversified and stable investment option.