champion-sets-out-to-improve-its-image

Champion sets out to improve its image

The unwinding of its financial engineering measures could be a boost both for Champion and the Hong Kong Reit sector as a whole, observers say.
February 25, 2008
The proposal by Champion Real Estate Investment Trust to acquire Langham Place from its sponsor for HK$12.5 billion $1.6 billion is interesting from a financing perspective since the trust is planning to raise 79% of the funding, plus the HK$300 million transaction cost, from the capital markets at a time when markets remain highly volatile. And when Reits in both Australia and Singapore are under intense pressure. Secondary capital raisings have also been something of a rarity in the Asian equity markets so far this year.

In addition to that, some analysts argue that the purchase price for the Langham Place retail mall and office tower, at an 11.8% discount to the appraised...
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