**********************************************************
The following is issued on behalf of the Housing Authority:
The Housing Authority (HA) Supervisory Group on Divestment (SGD) decided at its meeting today (September 6) to re-launch the global offering of units in a Real Estate Investment Trust (REIT) in November 2005 for the divestment of 180 of its retail and carpark facilities.
"Following the unanimous decision of the Court of Final Appeal confirming that HA has the power to divest, we look forward to achieving a successful re-launch of the global offering," Chairman of the SGD, Mr Walter Chan, said.
"It is intended that, subject to satisfying all regulatory and approval requirements, an offering circular for the re-launched global offering will be issued in November and that a listing of units on The Stock Exchange of Hong Kong Limited (SEHK) will be completed before the end of 2005," Mr Chan said.
"It is intended that The Link Management Limited (The Link) will be re-appointed to act as the manager of the REIT," he added.
Mr Chan said the REIT would require authorisation from the Securities and Futures Commission of Hong Kong (SFC) under the Securities and Futures Ordinance.
"An application for authorisation has been filed with the SFC today (September 6). Following the prescribed procedures in the listing rules of the SEHK, an application for listing of the units in the REIT on the SEHK will be made subsequently," he said.
"Further announcements with respect to the progress and timing of the re-launched global offering will be made in due course as appropriate."
After today's meeting, HA entered into agreements for the transfer of the properties to be divested for the purposes of the re-launched global offering, subject to the closing of the re-launched global offering. On completion of the re-launched global offering, HA will cease to own the portfolio to be divested.
The same properties that formed the basis of the previous offering - 149 integrated retail and carpark facilities, two stand alone retail facilities and 29 stand alone carpark facilities, will be divested under the re-launched global offering.
A full list of the properties to be divested is set out on HA's website at www.housingauthority.gov.hk and may be inspected at HA's offices at Housing Authority Headquarters, No. 33 Fat Kwong Street, Ho Man Tin, Kowloon, during office hours.
Since early March, The Link (currently a wholly-owned subsidiary of HA) has undertaken the day-to-day management of the majority of the properties to be divested as part of the preparatory work for a re-launched global offering.
The Link is currently responsible for collection of rents, rates and other fees and charges; marketing, promotion and public relations services; maintenance of the properties to be divested; monitoring of property management services contractors; and capital improvement programmes, in relation to the properties to be divested that it manages.
The Link is also acting as leasing agent of HA for all new and renewed lettings and carrying out a range of minor asset enhancement works to certain of the properties to be divested.
The Joint Global Co-ordinators and Listing Agents for the re-launched global offering are Goldman Sachs (Asia) LLC, The Hongkong and Shanghai Banking Corporation Limited and UBS Investment Bank. JP Morgan Securities (Asia Pacific) Limited is the Financial Adviser to HA for the re-launched global offering. The strategic partner of The Link is CapitaLand Limited.
Disclaimer
This press release is not for distribution, directly or indirectly, into the United States, Japan or Canada. This press release is not for, and is not intended to be, an offer of securities for sale in the United States and/or any other jurisdictions nor is it an offer of, or invitation to subscribe for, securities in Hong Kong. Securities of the REIT may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933.
Ends/Tuesday, September 6, 2005
Issued at HKT 19:08
NNNN
