hong-kongs-newest-reit-shows-even-a-champion-has-to-prove-itself

Hong Kong's newest REIT shows even a Champion has to prove itself

Tough market conditions and plenty of alternative choices keep demand for single-property REIT at modest levels and force yield towards top end of the range.
May 16, 2006
Champion Real Estate Investment Trust has priced its initial public offering towards the low end of the indicated range to give a 2006 yield of 5.46% after sluggish demand from the retail community in particular suggested investors arenÆt yet convinced the newcomer will live up to its name.

The yield, which is based on a guaranteed payout of at least HK$0.17 per unit, pitches the spin-off from property investment company Great Eagle Holdings in the middle of Hong KongÆs three existing REITs. It is on par with Prosperity REIT and slightly above the 10-year Exchange Fund note which currently returns 4.93%.

Champion REIT has only one Grade A office building in its portfolio...
¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222