X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

HONG KONG-The securities regulator in Hong Kong has required the territory’s second REIT, Prosperity, to disclose details of any shareholder who builds a stake of 5% or larger. Executives of the Prosperity Real Estate Investment Trust, which comprises seven properties transferred from the holdings of conglomerate Cheung Kong Holdings, said in a statement that they were being “required” by the Securities and Futures Commission to lower the notification threshold to 5% from 10% previously enforced.

Prosperity’s initial public offering, which will raise up to US$247 million, started this week and will end Thursday. It is only the second REIT to list in Hong Kong after the Link Real Estate Investment Trust, which comprises 180 retail properties, including shopping malls and parking lots, previously owned by the Housing Authority, Hong Kong’s public housing provider.

The Link REIT’s IPO proved controversial after it emerged that a UK hedge fund, the Children’s Investment Fund, which has about US$3 billion in assets under management, had accumulated an 18% stake in the trust on the open market. REIT regulations required the Link to disclose any shareholding of 10% or more, and so no report was made on the hedge fund’s stake until it had already reached 18%.

The manager of Prosperity REIT, ARA Asset Management (Prosperity) Ltd., said it would publish on its website all notifications it receives from shareholders.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.