Fortune Reit

Fortune Reit: will purchase Kingswood Ginza Property, comprising the Kingswood Ginza Mall, other retail, kindergarten, parking lots and ancillary spaces, for HK$5.85b, on par with independent valuations. The transaction constitutes a major acquisition, representing ~49% of Fortune’s mkt cap. The property is located in Tin Shui Wai, Yuen Long, New Territories. The property generated net property income of HK$110.4m for the 6mths ended Jun ’13. Gross rentable area is 665.2k sf, with mthly rental of HK$27.4 per leased sf. Occupancy rate is 95.5%. Mgt will finance the acquisition by drawing down ~HK$4.9b under the term loans, and using ~$HK950m out of the net proceeds of the unit placement.