New Century Reit defies tough markets with IPO of up to $254 million

New Century Real Estate Investment Trust, a China-based hotel trust, kicked off the management roadshow and institutional bookbuilding yesterday for a Hong Kong initial public offering that is seeking to raise between HK$1.64 billion and HK$1.97 billion $212 million to $254 million.

If successful, it will be the first real estate investment trust Reit to list in Hong Kong since Hui Xian Reit in April 2011. Hui Xian raised $1.6 billion through a renminbi-denominated IPO ahead of the listing.

New Century Reit, which is sponsored by New Century Group and the Carlyle Group, is offering a clean yield of 6.50% to 7.80% for 2013,...