Alibaba Group Holding’s plan to package a key warehousing hub into a real estate investment trust (Reit) for public listing will benefit the company and its shareholders by redeploying capital into higher-growth opportunities, according to analysts.

Alibaba, which two years ago scrapped a plan to publicly list its Cainiao logistics operation, said in a filing on Monday that it had received regulatory approval from the Hong Kong stock exchange to proceed with a proposal to spin off a certain logistics asset and list it as a Reit on the Shenzhen Stock Exchange.

“The proposed spin-off reflects a strategic effort by Alibaba to recycle capital and redeploy it into higher-growth opportunities,” said Chelsey Tam, senior equity analyst at investment consultancy Morningstar.

Tam said the move could help the e-commerce giant unlock the underlying value of a mature infrastructure asset while maintaining operational flexibility.

Alibaba said that the Reit’s underlying asset was Jiaxing Park, one of Cainiao’s key logistics and fulfilment facilities located in Jiaxing city in Zhejiang province.

The group has tapped CICC Fund as manager of the Reit, officially known as the CICC Cainiao Logistics Warehouse Infrastructure Reit. The proposal was still subject to approval from the Shenzhen Exchange and China Securities Regulatory Commission, according to the filing.