Guangzhou to Offer REIT Shares in Subway’s ‘Hell Line 3’

Southeastern China’s megacity Guangzhou plans to sell equity in its valuable, heavily traveled subway Line 3 to help pay the multibillion-dollar tab for the 11 other subway lines it is building. The line is known as “hell Line 3” among local residents because of its heavy rush hour traffic.

The city of 15 million people, part of China’s massive Greater Bay Area project which also includes Hong Kong and Macao, aims to raise an undisclosed amount by bundling Line 3 into a real estate investment trust (REIT). Such entities raise funds by selling shares in revenue-generating real estate projects and infrastructure assets to the public.