Regal Reit attracts modest but high-quality demand
Hong Kong's first hotel Reit prices at the bottom for a 7.5% yield ahead of a trading debut that could have implications for the entire HK Reit market.
Hong KongÆs first real estate investment trust backed by hotel properties quite predictably attracted modest demand as investors who bought four of the other five Reits listed in the city are still hurting from losses.
The offer was priced at the bottom of the HK$2.68 to HK$3.38 price range for a total deal size of HK$2.33 billion $299 million. At this price, Regal offers an annualised yield of 7.5% for this year.
However, sources say the...
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