The Wall Street Journal-20080205-Far East Consortium- Proposed REIT Hoped To Raise --36-513 Million

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Far East Consortium: Proposed REIT Hoped To Raise $513 Million

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Developer and hotel operator Far East Consortium International Ltd. said its shareholders approved its plan to raise at least 4 billion Hong Kong dollars (US$513 million) by spinning off seven hotel assets through a real-estate investment trust. The offering will mark the first REIT listing in Hong Kong after the disappointing debut of RREEF China Commercial Trust last June. Far East Chief Financial Officer Bill Mok said recent market volatility will work in the company's favor because investors will be looking for stable dividends. He declined to disclose the proposed REIT's targeted yield.