[photopress:regalhongkong.jpg,full,alignright]A reversal of the usual trend. Regal Hotels International Holdings (it has a portfolio of hotels in Hong Kong but not mainland China which it was seriously intending to start operations) has shelved, at least for the time being, its public offering of its real estate investment trust because of weak investor interest. Part of the money from the public offering would have been used to invest in hotels in China. All of this according to The Standard in Hongkong which cites the usual unnamed source. But it seems solid news and has been confirmed by Bloomberg News Service.
The company will delay the offering until it sees revived investor interest in real estate investment trusts. One factor might be that News Sunlight Real Estate Investment Trust, Hong Kong’s first trust with both retail and office assets, has fallen 5.4% since its trading debut last week. This does not augur well.
This is the second time the company has delayed its planned public offering of the trust. Earlier this month, Regal delayed a shareholder meeting to approve the sale by about a month because of errors in the offering documents. The idea was a substantial slab of the money raised was going to be used in hotel investments in China. Now that has been delayed somewhat.
Source: Shanghai Daily