JPMorgan Chase & Co. (JPM:US) sold the first structured notes tied to Hong Kong’s largest property trust in more than 15 months, as rising rents in the city fuel gains in real estate investments.
The bank on April 3 sold HK$4.5 million ($580,000) of securities tied to The Link (823) Real Estate Investment Trust, Hong Kong’s biggest REIT, and Wharf Holdings Ltd., the owner of the Times Square and Harbour City malls, according to an e-mail from the lender’s staff handling structured products in the city. The product pays monthly coupons for days when the prices of the two underlying assets remain in certain ranges, according to the e- mailed response to queries.
The Link REIT, which owns and manages shopping centers and parking spaces, and Wharf (4) both rose to all-time highs this month. Average Hong Kong rents for prime shopping locations may rise 8 percent this year, according to property broker CBRE Group Inc.
Polly Leung, a Hong Kong-based spokeswoman for JPMorgan, declined to comment on why the bank chose to link the notes to the property investments.
HSBC Holdings Plc had last issued notes tied to the Link REIT, along with other stocks, in December 2011, according to data compiled by Bloomberg.
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