Failure breeds Success!?
Last year... the listing aspirations of Link REIT were singlehandedly dashed by an elderly woman by the name of Lo Siu Lan.
This year... Link REIT is back!
The new deal structure also incorporates "withdrawal rights." These will enable retail investors to secure a full refund if there is a legal challenge to the Reit between the publication of the public offering prospectus and the day of listing. - FinanceAsia
Whole fiasco would have been avoided if the govt had put in a clause the first time around... but we all learn from our mistakes dont we?
So how is it goin to be like this time? Havin fallen flat on its face, what will the govt do to ensure that its baby project (a role model for the HK Airport's privitization) succeeds at birth?
EVERYTHIN! HK govt just cannot afford to be put to shame on its second round.
Personally, I'm not too keen on the offering. FinanceAsia sums up my sentiment quite well:
One of investors' key decisions will, therefore, be how quickly and effectively Link management will be able to raise rental yields and how close they can ever truly come to commercial levels. One major constraint is the fact that a portion the Reit's portfolio is rented by schools and welfare centres... ...Because Reits distribute all their income as dividends, an increase in short-term rates has a material impact on the bottom line thanks to increasing interest expense. It also makes it more difficult to find yield accretive acquisitions as the cost of debt capital also rises. - FinanceAsia
BUT the whole "Cannot fail again" concept just makes the offering worthwhile to look at
Let me talk myself into subscribing...
- World's largest IPO by a property trust
- First listing of its kind in HK - should attract funds looking for stable returns and portfolio diversification
- Surprisingly interbank rates are softer (hhmmm makes you wonder why banks are lending short-dated money aggresively *wink wink nudge nudge*)
- 5% discount for retailers (placement? IPO? I'm not really goin for alot of units, so IPO!)
- Guaranteed annualised distribution yield of 5.53% at Mar 06
- Expected distributed yield of 6.00% at Mar 07
- Better than puttin your money in the bank, on rising interest rates? Maybe! Any capital gains?
YES! Just becoz the govt is listing it AGAIN!!!!
Hell with the analysis... I'm SUBSCRIBING!
This year... Link REIT is back!The new deal structure also incorporates "withdrawal rights." These will enable retail investors to secure a full refund if there is a legal challenge to the Reit between the publication of the public offering prospectus and the day of listing. - FinanceAsia
Whole fiasco would have been avoided if the govt had put in a clause the first time around... but we all learn from our mistakes dont we?
So how is it goin to be like this time? Havin fallen flat on its face, what will the govt do to ensure that its baby project (a role model for the HK Airport's privitization) succeeds at birth?
EVERYTHIN! HK govt just cannot afford to be put to shame on its second round.
Personally, I'm not too keen on the offering. FinanceAsia sums up my sentiment quite well:
One of investors' key decisions will, therefore, be how quickly and effectively Link management will be able to raise rental yields and how close they can ever truly come to commercial levels. One major constraint is the fact that a portion the Reit's portfolio is rented by schools and welfare centres... ...Because Reits distribute all their income as dividends, an increase in short-term rates has a material impact on the bottom line thanks to increasing interest expense. It also makes it more difficult to find yield accretive acquisitions as the cost of debt capital also rises. - FinanceAsia
BUT the whole "Cannot fail again" concept just makes the offering worthwhile to look at
Let me talk myself into subscribing...
- World's largest IPO by a property trust
- First listing of its kind in HK - should attract funds looking for stable returns and portfolio diversification
- Surprisingly interbank rates are softer (hhmmm makes you wonder why banks are lending short-dated money aggresively *wink wink nudge nudge*)
- 5% discount for retailers (placement? IPO? I'm not really goin for alot of units, so IPO!)
- Guaranteed annualised distribution yield of 5.53% at Mar 06
- Expected distributed yield of 6.00% at Mar 07
- Better than puttin your money in the bank, on rising interest rates? Maybe! Any capital gains?
YES! Just becoz the govt is listing it AGAIN!!!!
Hell with the analysis... I'm SUBSCRIBING!
posted by Rups at 6:17 PM
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