Wharf is securitizing 42 per cent of the income from its commercial space in Harbour City for its ground-breaking US$576 million asset-backed bond, according to analysts.
A valuation conducted by Jones Lang Wootton estimates Wharf's portfolio at $12.04 billion, considerably lower than a $17.01 billion valuation made by research house Jardine Fleming.
The securitization will be the largest commercial mortgage-backed deal in Asia. Lead manager Merrill Lynch was promoting the bond in Europe yesterday and will move to New York next week.
JLW has estimated average office rental rates to be $26.50 per square foot and average retail rental to be $75.40 per square foot.
It estimated average occupancy to be 89 per cent, again lower than most market expectations.
The issue is being keenly watched by the market as it represents a new funding method for Hong Kong corporates, which have traditionally been reluctant to securitize earnings. Securitization is more popular in United States and European markets.
