(Yicai Global) Aug. 5 -- Chinese real estate giant Shui On Land is considering spinning off the subsidiary behind its legendary restaurant and shopping complex Xintiandi in downtown Shanghai, which now boasts a nationwide portfolio, and listing it in Hong Kong.

Shui On Land is mulling a possible spinoff and separate listing of its commercial investment properties and property management business on the Hong Kong Stock Exchange, the Shanghai-based arm of Hong Kong developer Shui On Group said yesterday, without going into more detail.

China Xintiandi Holding’s initial public offering in Hong Kong could raise as much as USD500 million next year, Bloomberg reported yesterday, citing people with knowledge of the matter. Morgan Stanley and UBS Group have been chosen to advise on the listing.

Shui On Land has been badly affected by the Covid-19 pandemic, with revenue plunging by more than half last year from the year before to CNY4.6 billion (USD711.6 million). Around 45 percent of this came from its property investments.

Shui On Land’s share price [HKG:0272] closed down 1.56 percent at HKD1.26 (USD0.16) today, giving it a market valuation of HKD10.1 billion (USD1.3 billion).

Editor: Kim Taylor