This would the first REIT from Shanghai and only the second fromthe Chinese mainland. Last December Guangzhou Investment's GZI REITbecame the first to list in Hong Kong when it raised US$216million.

State-owned Greenland, which was set up in 1997, revealed at thebeginning of this year that sales were up 45% on the year at 14.78billion yuan (US$1.84 billion). Income from real estate increased11% to 6.03 billion yuan (US$750 million). Greenland is also one ofthe few Chinese real estate companies to publish its results. Ithas a dozen commercial properties in Shanghai, including officebuildings, hotels and service apartment blocks, half of which willbe included in the trust. The REIT is expected to have an annualyield of 6% to 10%.

In February, Greenland signed a deal with InterContinentalHotels Group, under which it will manage four hotels with a totalof more than 1,400 rooms. Greenland plans to invest 1.5 billionyuan (US$187 million) in the four hotels--one in Nanjing, whichwill be the tallest hotel in the world, one Holiday Inn in Xian andtwo Express by Holiday Inns in Shanghai. Last year it bought acontrolling 40.11% in Nanjing Urban Development Group, the city'sbiggest developer.