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By Staff
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Google Oneindia News

HONG KONG, June 3 (Reuters) Henderson Land Development Co. Ltd. is delaying or scrapping its planned US$500 million property trust, Sunlight REIT, amid tepid market conditions, local papers said on Saturday.

Sunlight, which initially planned to launch its investor roadshow on Monday and aimed to start trading on June 21, has delayed listing by ''at least one or two weeks'', the South China Morning Post said, quoting a term sheet sent to fund managers.

The Weekend Standard said the Sunlight REIT had actually been abandoned.

''Everyone is getting increasingly skeptical over REIT investment, even for the developed Singapore REIT market,'' the Weekend Standard quoted one unnamed fund manager as saying.

A spokesperson for Henderson had no comment on the reports.

Hong Kong's REIT market got off to a flying start late last year with heavily subscribed IPOs from the Link REIT of formerly government owned shopping centres, Prosperity REIT from developer Cheung Kong (Holdings) Ltd. and GZI REIT of mainland Chinese buildings.

But enthusiasm for the securities, which pay most of their rental income as dividends, seems to have waned.

Shares in Champion REIT, a spin-off by Great Eagle Holdings Ltd., have lost 22.6 percent since their market debut in mid-May. GZI REIT has lost 4.9 percent since its listing, while Prosperity REIT has fallen almost 14 percent.

(US$1=HK$7.8) REUTERS PV ND1742

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