The REIT is selling 1.23 billion units between HK$5 and HK$5.75 each and it will offer investors a guaranteed yield of between 4.84% and 5.57%. The REIT will be priced May 16, and trading will begin May 24.
Champion REIT, which holds Citibank Plaza, will be Hong Kong's fourth listed REIT. Citibank Plaza, with a total office and retail floor space of 1.49 million sf excluding parking spaces, was valued at HK$22.67 billion ($2.92 billion) on Feb. 28, according to the prospectus. It will be managed by Eagle Asset Management.
Eagle Asset Management is a wholly owned subsidiary of Great Eagle, which also operates Langham Hotels in Hong Kong, the US, UK, Australia and New Zealand. Jeremy Stewardson, chief executive of Eagle Asset Management, said that he was hopeful Citibank Plaza will achieve full occupancy by the end of this year. As of the end of February, offices in the Plaza were 86.1% let and retail 100% let.
Great Eagle will maintain a 49.2% interest in Champion REIT. The other two shareholders, Kerry Properties and Wing Tai Corp. are to hold 4.2% and 1.6% of the REIT, respectively.
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