Doubt Shrouds Link Reit After Court’s Decision
The world’s largest Reit (real estate investment trust) IPO was thrown into
doubt yesterday after a Hong Kong court refused the government’s request
to reduce the time allowed for a second challenge to the sale of property within
the trust.
Following the court’s rejection of a last minute judicial review brought
by two Hong Kong residents, the government had hoped that the listing of the
Link Reit would be able to go ahead on Monday. However, a subsequent decision by the court to allow a 28 day period for the
lodgement of an appeal has thrown the whole process into doubt. Unsurprisingly, the saga is causing much uncertainty and anxiety within the
investment community. “It'll be worrying if this opens up concern in the international community
that there's going to be variables in the listing process,” Herbert Hui,
chairman of The Hong Kong Institute of Directors, observed in a Bloomberg report. “It's of the utmost importance for Hong Kong as an international financial
centre to have certainty in its financial system,” he warned. The Link Reit has attracted a huge amount of interest from prospective investors
with Hong Kong residents placing an unprecedented $37 billion in orders, whilst
institutional investors have pledged $40 billion. .
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