Monday, November 30, 2015   

First float of serviced apartments in works

Victor Cheung

Friday, October 12, 2012

Cheung Kong Holdings (0001) plans to spin off its local serviced apartment portfolio.

The developer, together with Hutchison Whampoa (0013), intends to hold less than 30 percent of the new real estate investment trust following its flotation, the firm said last night.

Also, the REIT will not be a direct subsidiary of the company.

Horizon Hospitality (Holdings), expected to be the name of the REIT, will consists of four service apartment projects - two in Hung Hom and one each in Kwai Chung and Ma On Shan.

Together they have a gross rental area of 3.32 million square feet, spread out over 4,833 suites. The occupancy rates vary between 88.6 and 94 percent.


The new REIT will lease the properties back to Cheung Kong and the group will take a combination of base and variable rents. Cheung Kong will also continue to manage the properties.

The new REIT will distribute all its profits in the first three years following the spinoff and at least 90 percent after that.

Cheung Kong said the spin-off will free up capital for the group's other investment opportunities, while the proceeds from issue will be used to invest in new serviced apartments. The group is now spinning off Dynasty REIT, which also denominated in yuan, in Singapore for up to 5.41 billion yuan (HK$6.67 billion) at the end of the month.

© 2015 The Standard, The Standard Newspapers Publishing Ltd.
Contact Us | About Us | Newsfeeds | Subscriptions | Print Ad. | Online Ad. | Street Pts


Home | Top News | Local | Business | China | ViewPoint | CityTalk | World | Sports | People | Central Station | Spree | Features

The Standard

Trademark and Copyright Notice: Copyright 2015, The Standard Newspaper Publishing Ltd., and its related entities. All rights reserved.  Use in whole or part of this site's content is prohibited.   Use of this Web site assumes acceptance of the
Terms of Use, Privacy Policy Statement and Copyright Policy.  Please also read our Ethics Statement.