Sun Hung Kai Properties Ltd has become the third company within a week to postpone the listing of a real estate investment trust (REIT) on the Hong Kong Stock Exchange.
In a statement released last week, Hong Kong's largest construction firm (by market value) explained that it had decided to postpone the REIT due to "current market conditions".
The company added that the proposed transactions will be postponed until further notice, but the board has yet to decide whether to proceed with them.
The announcement closely followed the decision of Henderson Land Development Co., the city's third-largest developer, that the initial public offering of its Sunlight Real Estate Investment Trust would be delayed indefinitely.
Meanwhile, Shui On Land Ltd., which develops apartments and offices in China and is controlled by Hong Kong billionaire Vincent Lo, has terminated a HK$7.96 billion ($1 billion) REIT IPO.
Hong Kong has had a troubled history with its new REIT vehicles, which were introduced following regulatory changes in 2005 and launched with a view to attracting listings away from Singapore, its main rival. The sale of government housing through the Link REIT, the world's largest REIT IPO, was stalled for several months after a judicial review was sought by a Housing Authority tenant.
It eventually listed on HKEx last November after securing HK$110 billion (US$14.2 billion) in orders from retail investors (substantially less than the HK$280 billion placed in the aborted sale) and HK$167 billion from institutional investors.
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