Greenland Group, China's largest state-owned developer, said on Friday it will set up a real estate investment trust (REIT) in Singapore in partnership with investment firm Amare.
The REIT, which will be listed on the main board of the Singapore Exchange, will purchase 19 hotel properties from Greenland for 21 billion yuan ($3.23 billion), the companies said.
Singapore-based Amare Investment Management Group has investment in hotels, theme parks, retail, residential and lifestyle real estate developments.
The REIT to be set up by Amare and a Greenland unit will acquire Greenland's existing hotel assets both in China and overseas, Reuters reported. The initial investments will be made in six hotels in cities including Shanghai, Nanjing, Jinan, Xi'an, Zhengzhou and Yangzhou.
"This deal, which took two years of in-depth negotiation, is a big win for both Amare and Singapore. Securing this strategic collaboration is testimony of our reputation and track record in asset management and it also underscores the confidence that the Greenland Group has in Singapore and the region," David Su, Group Chairman for Amare Investment Management Group, said.
The companies have not said how much money they look to raise by listing in Singapore.