Hong Kong-based conglomerate New World Development Co Ltd announced on Monday that it has received the notice of acceptance by Shanghai Stock Exchange on the proposed spin-off and separate listing of the NWD C-REIT on SSE, becoming the first of its kind among Hong Kong enterprises.

The underlying assets of the NWD (New World Development) C-REIT, also known as China's real estate investment trust, comprise Shanghai K11 Art Mall and Shanghai K11 Atelier New World Tower (NWT), in which New World Development holds the entire equity interest.

Following the completion of the proposed spin-off, the group would remain the operation manager of the asset to provide operation management, property management and related management services. In the meantime, the asset would continue to be marketed under the group's "K11" brand.

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The expected offering size of the NWD C-REIT is about 3.82 billion yuan ($570 million). New World Development would subscribe for at least 20 percent interest in the NWD C-REIT. The remaining would be subscribed by strategic investors, institutions investors and retail investors.

Huang Shaomei, executive director and chief executive officer (CEO) of New World Development, said the proposed spin-off will open up the opportunity for the group to access new forms of capital from institutional and retail investors in the region.

"It will also enable us to unlock asset value and redirect resources to support future growth through other projects," Huang added.

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According to Huang, the NWD C-REIT will become a capital instrument with stable return in the form of unit distributions, while the group will continue to benefit from the business prospects and results of the asset through asset-light model.

The continued financialization of these assets is believed to better facilitate the group's strategy to recycle capital, improve liquidity and deleverage.