Hopewell seeks $780 million from property unit spin-off

The IPO comes as the property sector takes a dive due to concerns about rising interest rates, but even so, it was accompanied in the market yesterday by Ascendas Hospitality Trust, which raised $113 million to finance an acquisition.
<div style="text-align: left;"> The Hopewell Centre </div>
<div style="text-align: left;"> The Hopewell Centre </div>
May 30, 2013

Hopewell Hong Kong Properties yesterday launched the management roadshow and bookbuilding for a Hong Kong initial public offering of between HK$5.2 billion and HK$6.05 billion $670 million to $780 million.

It is the second IPO this month to offer exposure to the Hong Kong property sector, but contrary to hotel-focused Langham Hospitality Investments, which priced last week, this is not a yield play.

Rather, it is a pure spin-off of Hopewell Holdings’ entire property portfolio in Hong Kong, including two major development projects in the city’s Wan Chai district that are expected to be completed in 2015 and 2018 respectively. Hence it is offering...

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