New Century Hotel Group, China's biggest privately-owned hotel chain operator, plans to raise up to $300 million in the first initial public offering by a real estate investment trust (REIT) in Hong Kong in two years, IFR reported on Saturday, citing sources familiar with the plans.
The company, backed by private equity firm Carlyle Group, decided to list the hotel business to attract more investor demand, after earlier planning to list both the hotel and its property development business, added IFR, a Thomson Reuters publication. The IPO could take place in the second or third quarter of 2013 and would be the first REIT listing in the city since 2011 and the $1.6 billion offering of Hui Xian REIT, the flagship real estate investment trust controlled by billionaire Li Ka-shing, IFR said.
New Century's IPO would be one of several deals planned for coming weeks from companies looking to benefit from demand for commercial property in Hong Kong. Hong Kong property and investment company Great Eagle Holdings Ltd plans to spin off its Langham hotel chain through an $800 million IPO, while property and infrastructure group Hopewell Holdings is looking to raise as much as $800 million spin-off of its property and hospitality business Hopewell HK Properties. Morgan Stanley and Standard Chartered Plc were hired to manage the IPO, IFR reported.