(Dec 24): GDS Holdings Ltd is considering an initial public offering (IPO) for a real estate investment trust (REIT) of its data centre assets in China, according to people familiar with the matter.

The Chinese company is working with advisers to sound out initial interest in a potential share sale that could raise about one billion yuan (US$140 million or RM614.61 million), the people said, asking not to be identified discussing private information.

A listing of the REIT could happen as soon as next year, the people said, adding that deliberations are ongoing and may not result in any transaction.

A representative of GDS didn’t respond to requests seeking comment.

GDS recently announced a Series B funding round for its data centres outside of China. Coatue Management, SoftBank Vision Fund and Citadel chief executive officer Ken Griffin were among the investors.

China last year loosened eligibility rules for assets in REITs, a move that S&P said at the time opened it up to become one of the world’s biggest markets for commercial property trusts.

Some 13 REIT IPOs were priced over the past year in China. The China Securities Regulatory Commission also plans to include REITs in the Hong Kong Stock Connect programme to expand exposure to offshore investors.

Uploaded by Tham Yek Lee