Tag Archives: Rights Issue

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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Indiabulls trust may not proceed with rights issue

Posted on 25 Aug 2009 | Comments Off on Indiabulls trust may not proceed with rights issue

INDIABULLS Property Management, which manages the Indiabulls Properties Investment Trust listed here, has clarified that it might not go ahead with a proposed $200 million rights issue.

In a statement, Indiabulls said that it is still in the process of evaluating various sources of funding and other means of capital management for its trust fund, including a rights issue and other borrowing facilities,

In evaluating the sources of funding, the manager will take into account the financial requirements of the fund and the prevalent market conditions to continue to build a solid foundation for long-term success and unitholders’ value maximisation.

Indeed, the trust manager said that it has not formally appointed an investment bank to act as the manager and underwriter of the rights issue or the terms of the rights issue.

Instead, it will make these decisions at a later stage depending on the financial requirements of IPIT and the prevalent market conditions at the material time.

However, it did make a listing application to the stock exchange for new units to be issued under a rights issue.

Source : Business Times – 25 Aug 2009

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Posted in Funds

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