Fortune REIT intends to delist from SGX

Signage for HKEx, Hong Kong’s stock exchangeSignage for HKEx, Hong Kong’s stock exchange

Fortune REIT intends to delist its secondary listing on the Singapore Exchange while remaining listed in Hong Kong, the REIT’s manager, ARA Asset Management (Fortune), said in a filing to SGX Wednesday.

“The manager believes that Fortune REIT’s primary listing on the HKSE is sufficient to meet its future debt and equity fund raising requirements to meet its operations needs and future development,” the filing said.

“The board of directors of the manager believes that the SGX delisting will eliminate the additional administrative overhead and costs of compliance associated with Singapore regulatory requirements and allow Fortune REIT to streamline its compliance obligations, reduce its legal and compliance costs,” the manager said.

It noted that currently, the REIT must comply with both Singapore and Hong Kong regulations.

In addition, while Fortune REIT is constituted in Singapore, Hong Kong is its principal place of business, all of its properties are located in the protectorate and its unit price is quoted in Hong Kong dollars on both the HKSE and SGX, the manager said.

The trading volume on SGX has been thin, exceeded “significantly” by the volume traded in Hong Kong, the manager said. The average daily trading volume for the June 2018 to May 2019 period was around 2.44 million units in Hong Kong, compared with just around 62,000 in Singapore, the filing aid.

The REIT manager said Fortune REIT will not need to convene a meeting of unitholders to approve the delisting, nor will it need to offer an exit alternative.

SGX has advised that it has no objection to the delisting, the filing said.

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