Li Ka-shings Fortune REIT To Delist From Singapore Exchange

Singapore and Hong Kong-listed Fortune REIT, controlled by Li Ka-shing, has opted to delist its Singapore units and maintain its sole listing status in Hong Kong.

In a securities filing on Wednesday, ARA Asset Management, the manager of Fortune REIT, said the move will eliminate the administrative overhead and compliance costs associated with the Singapore listing.

The delisting, the filing added, will “allow Fortune REIT to streamline its compliance obligations [and] reduce its legal and compliance costs.”

The REIT manager also said that most of Fortune REIT’s retail properties are in Hong Kong and the unit price is also quoted in Hong Kong dollars on both bourses. The Singapore delisting, therefore, will better reflect the investors and geographical asset profiles of the REIT.

ARA also highlighted a continuous migration of unitholders from Singapore since the dual listing. As of June 19, the number of units listed on the Singapore bourse is approximately 374.9 million, or about 19.4 per cent of the total number of units in issue for Fortune REIT.

The trading volumes for Fortune REIT on the Singapore bourse have also been thin. During the twelve-month period from June 2018 to May 2019, approximately 2.44 million units were traded in Hong Kong, compared to 62,000 units in Singapore.

ARA has already gotten approval from the Singapore Exchange (SGX) Limited for the delisting.

Fortune REIT units closed the trading session on SGX on Thursday at HK$10.60, up 0.57 per cent. With the total number of units outstanding at 1.93 billion, the total market capitalisation stood at approximately HK$20.44 billion ($2.61 billion).