Li Ka-shing's Cheung Kong to list serviced-flat investment trust
Cheung Kong expected to raise up to US$800 million in amid 'robust' demand for offering
Li Ka-shing's property flagship, Cheung Kong (Holdings), plans to list its serviced-apartment business in an investment trust offering that could raise up to US$800 million, people with direct knowledge of the plan say.
According to the sources, demand for a public offering by the business trust has been "robust" as it offers attractive yields to investors amid a lingering euro-zone debt crisis and a slowdown in the mainland economy.
"Listing of Li's business trust offers meaningful cash payment to investors, at higher than the market rate at this juncture," a person familiar with the situation told the South China Morning Post, asking not to be identified because the talks were private.
The proposed listing is set to be launched at a time when Hong Kong's property market continues to defy gravity despite measures initiated by the government to rein in prices.
Horizon Hospitality (Holdings), which owns two hotels in Kowloon and two in the New Territories, providing a total of 4,833 suites, had filed an application to list stapled units on the main board of Hong Kong stock exchange, Cheung Kong said yesterday in a statement posted on the website of the exchange.
The group would retain less than 30 per cent interest in the properties.