Daily Archives: 25 Aug 2009

Fortune Reit raising funds to buy HK malls

Posted on 25 Aug 2009 | Comments Off on Fortune Reit raising funds to buy HK malls

Debt and rights issue to raise HK$5b; unit price dives on fears of yield dilution

Fortune Reit is raising funds totalling close to HK$5 billion (S$930 million) through debt facilities and a rights issue, joining the spate of S-Reits that have rolled out their re-financing plans.

The bulk of the HK$1.9 billion gross proceeds from rights issue and a term loan of HK$480 million will be used to fund Fortune’s latest acquisitions.

Yesterday, the Reit announced that it was acquiring three suburban retail properties from Hong Kong tycoon Li Ka-shing for HK$2.04 billion.

The three properties are Metro Town and Caribbean Bazaar in New Territories and Hampton Loft in Kowloon, with a combined gross rentable area (GRA) of 318,574 sq ft and an average yield of 5.5 per cent, comparable to the average of above 5 per cent yield for Fortune’s existing assets. Continue reading →

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Posted in Funds, Overseas Property

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Serangoon site gets $83.7m bid

Posted on 25 Aug 2009 | Comments Off on Serangoon site gets $83.7m bid

ANOTHER suburban residential site on the Government’s reserve list has been triggered for sale, signalling rising developer confidence.

Yesterday, an unnamed developer put in the minimum acceptable bid of $83.7 million, or some $200 per sq ft (psf), for a 1.39ha site in Serangoon Avenue 3.

Property consultants expect to see tender bids coming in at much higher levels because the site is in an established residential area near an MRT station. The 99-year leasehold site is near Lorong Chuan station – one of the first five stations to open on the Circle Line – as well as the Australian International School.

It has a maximum gross floor area of 38,857 sq m, according to the Urban Redevelopment Authority, and can accommodate an estimated 370 housing units. Continue reading →

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Posted in Developers, Property Market / Real Estate

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