An expansion of the Zhangjiang Real Estate Investment Trust (REIT) on the Shanghai Stock Exchange (SSE) was completed on June 16.

The expansion will drive the scale of the REIT to 3 billion yuan ($416 million) and is expected to further boost the development of the tech industry in the Zhangjiang Science City in Shanghai's Pudong New Area. 

The country's first infrastructure REIT, the Zhangjiang REIT was listed on the SSE in June 2021.  

"In the future, we will work with Zhangjiang Group to give full play to the long-term strategic value and sustainable development capacity of public REITs, continuously attract high-quality assets and share the development dividends of Pudong and Zhangjiang with the market," said He Dajun, vice-chairman and general manager of Zhangjiang Hi-tech Park.

Efforts to expand the Zhangjiang REIT first started in April 2022 when Pudong's State-owned Assets Supervision and Administration Commission had Zhangjiang Hi-Tech Park and Zhangjiang Group explore assets that met the requirements. Eventually, Zhangrun Building, a joint investment by both parties, was selected as the infrastructure project to be purchased in the expansion of the Zhangjiang REIT. 

Located in the core area of the Shanghai Integrated Circuit Design Industrial Park, the building is an important driver of Zhangjiang Science City's industrial development. 

Pudong's State-owned enterprises will also use the expansion of the Zhangjiang REIT as an opportunity to participate in the REITs market, inject vitality into tech industries, and promote the development of the sci-tech sector in Zhangjiang Science City.

A rendering of the future Zhangjiang Science City. [Photo/WeChat account: pdnews]