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The following is issued on behalf of the Housing Authority:
Not for distribution in or into the United States, Canada or Japan
Every valid application in the Hong Kong Public Offering (HKPO) of The Link Real Estate Investment Trust (The Link REIT) for up to three board lots will be allocated the full amount of units applied for.
For valid applications for more than three board lots, over 60 per cent will be allocated more units than they would have been allocated in the previous offering.
"In other words, every valid application will be allocated the same or more Link REIT units than they would have been allocated last year," a spokesman for the Housing Authority (HA) said.
About 45 per cent of the total units of The Link REIT following completion of the Global Offering will be allocated to local investors (under HKPO), Mandatory Provident Funds and charities or foundations.
Preferential allocations will be given to Mandatory Provident Funds and charities or foundations.
"There has been a good response to the offering with a total of about 234,000 applications under the HKPO, notwithstanding that market conditions were more challenging than last year," the spokesman said.
The HKPO, comprising 30 per cent of the units initially available under the Global Offering (subject to the over-allotment option) was about 19 times subscribed.
In accordance with the clawback mechanism stipulated in the Offering Circular, investors under the HKPO will be allocated 40 per cent of the units initially available under the Global Offering (subject to the over-allotment option)excluding an allocation of US$120 million worth of units to The Link Management Limited's strategic partner, CapitaLand Limited.
In the event that the over allotment option is exercised, the allocation to the HKPO will equate to about 34 per cent of the total allocated units of The Link REIT.
The price of units has been set at HK$10.30 per unit (excluding brokerage and applicable levies), the top of the indicative price range. For the HKPO, the price after the Hong Kong public offering discount of 5% is HK$9.78 per unit (excluding brokerage and applicable levies).
Assuming the exercise of the over-allotment option, the total proceeds to the HA arising from the divestment will be HK$33.8 billion (before fees and expenses), representing an increase of about six per cent over the proceeds that would have been received by the HA from the divestment in 2004.
The allocation proposal and pricing of the units were approved by the HA's Supervisory Group on Divestment and was supported by the Board of Directors of The Link Management Limited yesterday (November 19).
The results of allocations under the HKPO will be announced through various channels from Thursday, November 24 to Monday, November 28. Allocation results booklets will be available at the 65 receiving bank branches listed on pages 243 to 245 of the Offering Circular and at all branches of the Hong Kong Post.
The results will also be available through The Link REIT's HKPO hotline on 183 3838, on The Link REIT's HKPO website at www.linkreitipo.com.hk and on the Stock Exchange of Hong Kong's website at www.hkex.com.hk
Trading in units of The Link REIT is expected to commence on Friday, 25th November on the Main Board of the Stock Exchange of Hong Kong under the stock code 823.
Disclaimer
This press release is for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for securities. The Securities and Futures Commission of Hong Kong, The Stock Exchange of Hong Kong Limited and Hong Kong Securities Clearing Company Limited take no responsibility for the contents of this press release, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this press release.
End/Sunday, November 20, 2005.
Issued at HKT 21:03
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