Fortune – BT

Fortune Reit hires ANZ, DBS and Stanchart for loan

FORTUNE Real Estate Investment Trust (Reit) hired Australia and New Zealand Banking Group Ltd (ANZ), DBS Bank Ltd and Standard Chartered plc (Stanchart) to arrange and underwrite a HK$1.4 billion (S$233 million) three-year loan, according to a person familiar with the matter.

The three banks will begin marketing the facility to other lenders in January, said the person.

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. ANZ, DBS and Stanchart were bookrunners on the existing HK$970 million facility, said the person yesterday.

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