Fortune Real Estate Investment Trust has announced a HK$1.889 billion $244 million renounceable rights issue, which will be used as part payment for the HK$2.09 billion $270 million acquisition of three shopping malls in Hong Kong.
Backed by Li Ka-shing's Cheung Kong Holdings, Fortune is listed in Singapore but its existing portfolio of 11 retail malls and properties are all located in Hong Kong. Unusually, the stock also trades in Hong Kong dollars.
The rights issue is interesting because, according to bankers, it is really the first among the recent Singapore Reit fundraisings that is principally about supporting growth, as opposed to recapitalisation or debt refinancing. As such, it may well signal that...
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