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Hong Kong-based Fosun International has announced plans to spin off its luxury resort, Atlantis Sanya, and list it on the Shanghai Stock Exchange as a real estate investment trust (REIT). The proposed listing will use the resort as the underlying asset under China's commercial property REIT framework and remains subject to regulatory approvals. The move follows earlier efforts by the group to monetise assets and manage debt, which stood at RMB 222.10 billion as of mid-2025. The Hong Kong Stock Exchange has granted a waiver allowing the spin-off without assured entitlement to existing shareholders, deviating from standard listing norms.
Fosun International has announced plans to spin off its luxury hospitality asset, Atlantis Sanya, and list it as a real estate investment trust (REIT) on the Shanghai Stock Exchange, as part of its ongoing efforts to restructure its balance sheet and monetise assets, according to a company statement issued in the past week. Advertisement
The proposed transaction involves using Atlantis Sanya as the underlying asset for a Chinese commercial property REIT. The structure aligns with the mainland's REIT framework, which allows income-generating real estate assets to be securitised and listed, providing liquidity to sponsors while offering investors exposure to operational assets.
The development follows earlier reports that the group had been exploring options to divest part or all of the resort asset to reduce leverage. As of mid-2025, Fosun International reported total debt of approximately RMB 222.10 billion, reflecting an increase compared to the end of the previous year. The REIT listing is positioned as an alternative route to unlock value while retaining partial exposure to the asset.
The Hong Kong Stock Exchange has granted a waiver in relation to the proposed spin-off, permitting Fosun to proceed without extending assured entitlement to existing shareholders for subscription of units in the new REIT. Under standard listing requirements, shareholders are typically offered preferential participation in such transactions. The waiver indicates regulatory flexibility in accommodating cross-market restructuring and listing structures.
The proposed listing remains subject to approvals from the China Securities Regulatory Commission and the Shanghai Stock Exchange. These approvals will determine the final structure, timeline and execution of the transaction, particularly given the regulatory oversight applicable to REIT listings in mainland China.
Atlantis Sanya, located in Hainan province, operates as a large-scale integrated resort combining hospitality, entertainment and tourism infrastructure. Assets of this nature have increasingly been considered suitable for REIT structures, given their stable revenue streams and long-term operational profiles.
Fosun's board is scheduled to meet in the coming days to announce its financial results for the year ended December 2025, which may provide additional clarity on its broader capital management strategy and asset monetisation plans.
The proposed REIT listing reflects a wider trend among real estate and infrastructure asset owners in China, where monetisation through capital markets is being used to manage debt levels and recycle capital into new investments. The outcome of this transaction will be closely watched, particularly in the context of evolving REIT frameworks and funding strategies within the region's real estate sector.
Source - Reuters
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