Liquid real estate Issue 05
Champion Reit bulks up with Langham Place acquisition
The Asian real estate investment trust (Reit) market has weathered the sub-prime storm reasonably well, but a new deal suggests that the grim credit markets are going to lead to significantly different structures this year. Specifically, much simpler ones.
The deal involves Champion Reit, Hong Kong’s largest commercial Reit, and one of a sequence of trusts that were launched with great fanfare in Hong Kong in 2006 only to perform disappointingly. Apart from the fact that it owns only one asset, Citibank Plaza in Hong Kong’s Central district, it is also well known for its use of financial engineering.
Champion, like other Hong Kong Reits launched in 2006, used interest rate swap agreements in order to boost yields in its earlier years by deferring interest payments to later in the trust’s life. The logic for this at the time of launch was that commercial assets...
Please log in now to view.
Enter your username (email address) and password at the top right-hand side of euromoney.com.
If you do not currently have access to this content, visit the subscription page or call our hotline on +44 (0)207 779 8999.
Subscribe online now and save up to 30%
If you are a trialist or subscriber, please enter your username and password at the top right-hand side of euromoney.com
Subscribers to Euromoney benefit from:
- 12 months access in print and online - on euromoney.com, read the latest issue early online, search for specific developments by region or sector, interrogate the results of Euromoney's benchmark polls, and view the archive dating back to 1996
- More than 30 specialist research guides free
- The results of Euromoney’s polls and surveys
- Tailored RSS news feeds direct to your desktop
- News delivered directly to your mobile device or PC
- Personalised email newsfeed of 'Top stories' and 'Breaking news'
Click here to subscribe