Fortune Reit raises $125 million from upsized placement

The money will help fund a proposed $754 million acquisition of a Hong Kong shopping mall from Cheung Kong, which is the largest owner of the Li Ka-shing-backed Reit.
Fortune Reit will use the proceeds to buy Kingswood Ginza mall in Hong Kong's New Territories
Fortune Reit will use the proceeds to buy Kingswood Ginza mall in Hong Kong's New Territories

Fortune Real Estate Investment Trust, which is backed by investor Li Ka-shing and focuses on shopping malls and other retail properties in Hong Kong, has raised HK$975 million $125 million from a sale of new units, after upsising the deal by 23.5%.

The deal attracted about 50 accounts, with allocations heavily skewed towards long-only investors and current unitholders, according to a source close to the placement.

The price was fixed just below the mid-point of the range, resulting in a 4.3% discount to the average close on Monday. Fortune Reit is listed both in Singapore and Hong Kong, and the average close referred to the mid-point...

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