Deacons advises on the spin-off and Main Board listing of Wharf Real Estate Investment Company Limited

Deacons advises The Wharf (Holdings) Limited (stock code: 4) (“Wharf“), Wheelock and Company Limited (stock code: 20) (“Wheelock”, being Wharf’s holding company) and Wharf Real Estate Investment Company Limited (“Wharf REIC”) in relation to the proposed spin-off of Wharf REIC from Wharf for separate listing of Wharf REIC’s shares on the Main Board of the Hong Kong Stock Exchange by way of introduction.

Wharf REIC owns and operates premium quality properties in Hong Kong which it holds for investment purposes.  Its property portfolio includes, among others, Harbour City, Times Square, Crawford House, certain units in Wheelock House, as well as Plaza Hollywood.

The spin-off is a demerger effecting the separation of the strategic and substantial Hong Kong property investment business from the other businesses of the Wharf group and the Wheelock group by demerging the Wharf group into Wharf REIC and the remaining Wharf group. Following completion of the spin-off (which involves distribution in specie of Wharf REIC’s shares to Wharf’s shareholders), Wharf REIC will cease to be a subsidiary of Wharf but will remain as a subsidiary of Wheelock.

The listing document of Wharf REIC was despatched to Wharf’s shareholders on 9 November 2017.  Dealings in Wharf REIC’s shares on the Main Board of the Hong Kong Stock Exchange are expected to commence on 23 November 2017.

The joint sponsors to Wharf REIC’s proposed listing are HSBC Corporate Finance (Hong Kong) Limited and Somerley Capital Limited.

Deacons’ team is led by Ronny Chow and Rhoda Yung, partners in our Corporate Finance Practice Group.