After a five-year absence, Hong Kong's securitization market will shortly see its first CMBS offering since late 2000. Fortune Real Estate Investment Trust launched last Thursday the HK$2.385 billion ($306.8 million) deal via Triumph Assets Ltd - a Cayman Islands registered special purpose vehicle. HSBC Securities will act as arranger. Price guidance has not been released, but the deal is expected to price and settle before the end of the month.
The transaction is collateralized by a secured loan held over 11 retail properties owned by Fortune. The properties, mainly suburban shopping malls, are scattered over Kowloon and the New Territories in Hong Kong, with a diverse range of tenants from retail, banking, food and beverage, and the services industries.