Developers and Investors of Hong Kong Property Market Anxious
A bubbly market in Hong Kong makes both developers and investors involved in real estate very anxious. However with foreign property markets time and again rated too low, Hong Kong investors are moving offshore to take the benefit of fire sale prices.
The Hong Kong Investment Corporation, an independent wealth fund, has recently stated that it is taking part in an AUD485 million financing of Australia's Goodman Group, a leading industrial property investor, in cooperation with Macquarie Bank. Of the total, AUD200 million will be taken from Hong Kong Investment Corporation and the leftover AUD285 million from Macquarie Bank.
Goodman Group had declared that Macquarie Bank considered to make available it with AUD300 million of financing, however, to get Hong Kong Investment Corporation into the financing plan, Macquarie Bank had reduced its amount by AUD15 million, and the full amount was lifted to AUD485 million. The period for this financing arrangement is 9 months, and will be payable in February 2010, with an expanded period of 15 months.
As per the financing plan, Goodman Group will also make available the alternative of 255.3 million shares of stapled securities, for a time period of 2 year and exercise price of $0.4 per share to both of its creditors, who have to share the alternative as per the proportion of funds they make available.
Because of the worldwide economic recession, property trust firms have discovered that they don’t have enough funds and time and again they are helpless without deleveraging. A member of Hong Kong Investment Corporation recently stated that his investment in Goodman Group was not straightforwardly associated to the property market in Australia, however aimed to present the company with liquidity hold up and to enhance its long-term capital structure. The major business of Goodman Group is logistics and industrial property.
The Hong Kong Investment Corporation, an independent wealth fund, has recently stated that it is taking part in an AUD485 million financing of Australia's Goodman Group, a leading industrial property investor, in cooperation with Macquarie Bank. Of the total, AUD200 million will be taken from Hong Kong Investment Corporation and the leftover AUD285 million from Macquarie Bank.
Goodman Group had declared that Macquarie Bank considered to make available it with AUD300 million of financing, however, to get Hong Kong Investment Corporation into the financing plan, Macquarie Bank had reduced its amount by AUD15 million, and the full amount was lifted to AUD485 million. The period for this financing arrangement is 9 months, and will be payable in February 2010, with an expanded period of 15 months.
As per the financing plan, Goodman Group will also make available the alternative of 255.3 million shares of stapled securities, for a time period of 2 year and exercise price of $0.4 per share to both of its creditors, who have to share the alternative as per the proportion of funds they make available.
Because of the worldwide economic recession, property trust firms have discovered that they don’t have enough funds and time and again they are helpless without deleveraging. A member of Hong Kong Investment Corporation recently stated that his investment in Goodman Group was not straightforwardly associated to the property market in Australia, however aimed to present the company with liquidity hold up and to enhance its long-term capital structure. The major business of Goodman Group is logistics and industrial property.
Labels: industrial property, logistics, property trust firms
Posted by Moveandstay
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