There are solicitation documents reaching high-profile investors in China and some parts of Asia-Pacific that came from Champion REIT, seeking funds worth up to US$980-million. The proceeds of the sale as per the documents will be use to buy the Langham Place, a prime office and retail complex in Hong Kong.
The Hong Kong-based real estate investment trust (REIT) aims to purchase most of the 59-storey office tower and mall from Great Eagle Holdings, which all in all would cost them around US$1.6-billion. To satisfy the deal, the investment firm plans to satisfy the transactions via a bank loan, convertible bonds and unit sale.
The unit sale, priced between HK$3.60 and HK$3.80 and arranged by Citigroup, is expected to raise about US$380 million. On the other hand, the convertible bond issue aims to raise up to US$600 million, with the securities yielding 4.75% to 5.25%. The conversion price will be between 25% and 32% higher than the price of the share sale.
Champion REIT is a real estate investment trust formed to own and invest in an income-producing portfolio of prime grade-A office and commercial properties primarily in Hong Kong.
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