Bloomberg News

Fortune REIT Hires ANZ, DBS and Standard Chartered for Loan

January 03, 2012

Dec. 30 (Bloomberg) -- Fortune Real Estate Investment Trust hired Australia and New Zealand Banking Group Ltd., DBS Bank Ltd. and Standard Chartered Plc to arrange and underwrite a HK$1.4 billion ($180 million) three-year loan, according to a person familiar with the matter.

The loan comprises a HK$1.1 billion term loan and a HK$300 million revolving credit facility and pays a margin of 200 basis points over the Hong Kong interbank offered rate, according to a filing with the Hong Kong stock exchange.

Proceeds of the term loan are for Fortune REIT’s intended acquisition of two retail properties in Hong Kong, Belvedere Garden Property and Provident Centre Property, purchased for HK$1.25 billion and HK$650 million respectively, according to the statement. The loan is secured by rentals, deposits, and proceeds from properties.

Fortune will also use an existing revolving credit facility of HK$970 million due 2016 to fund the acquisitions. That facility pays a margin of 91 basis points more than Hibor, according to data compiled by Bloomberg. Standard Chartered helped arrange that loan, which was provided by a syndicate of banks, according to the statement. DBS and ANZ also participated, according to Bloomberg-compiled data.

Singapore-based Fortune has the equivalent of $489 million in loans maturing before the end of 2016, according to data compiled by Bloomberg.

--Editor: Katrina Nicholas

To contact the reporter on this story: Wendy Mock in Hong Kong at wmock3@bloomberg.net

To contact the editor responsible for this story: Shelley Smith at ssmith118@bloomberg.net


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