SF Fengtai, SF REIT (2191 HK)‘s largest shareholder (with 36.61%), and a wholly-owned subsidiary of SF Holding (6936 HK), has agreed to buy SF REIT’s entire operating property company for HK$2,6bn.
Once completed, SF REIT will pay unitholders HK$3.28/unit (via special + interim distributions) - a 22.3% premium to undisturbed - then liquidate and delist.
China Orient, with 20.28% of shares out, is supportive. This may potentially wrap up late 1Q27.
SF REIT is illiquid - look away now if this is not your thing.
The Trade:
This entire construct appears clean.
Trading at a gross/annualised spread of 8.8%/22.4%, assuming 31st March completion.
Get involved if small, illiquid arbs are your thing.