New Century REIT IPO to Raise up to $254 Million

The Wall Street Journal 20 June 2013
New Century Real Estate Investment Trust has started taking orders from institutional investors for its initial public offering in Hong Kong that will raise as much as US$254 million, according to a term sheet seen by The Wall Street Journal.
The hotel trust, which is backed by private-equity company Carlyle Group LP and owns five five-star New Century hotels in China, is launching the IPO in uncertain market conditions. Many investors are selling real-estate investment trusts, or REITs, in the expectation that U.S. interest rates will continue to rise, which would take the sheen off dividend-paying investment products in emerging markets.
On Thursday, Hong Kong’s benchmark Hang Seng share index fell by 2.9%, closing at a nine-month low of 20,382.87, reflecting unease among investors after the U.S. Federal Reserve indicated it may start to reduce its US$85 billion-a-month bond-buying program earlier than expected.
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