PAG Real Estate (PAG RE) has issued a formal complaint to Hong Kong’s Securities and Futures Commission (SFC) against Hong Kong–listed Spring Real Estate Investment Trust (Spring REIT), stock code 1426 HK, regarding substandard corporate governance, conflicts of interest and the consistent failure of Spring REIT’s manager to uphold its fiduciary duties to unitholders.
Since its initial public offering in December 2013, Spring REIT has remained the worst-performing general REIT listed on the Hong Kong Stock Exchange. As of the market close on Feb. 11, 2020, Spring REIT’s unit price was HK$3.19 ($.41) per unit, representing 16.3 percent below its 2013 IPO price of HK$3.81 ($.49).
Despite Spring REIT’s sustained financial underperformance, its manager, Spring Asset Management Limited (the manager), a subsidiary of Tokyo-listed Mercuria Investment Co. Ltd., receives the highest management fee percentages among its Hong Kong–listed peers.
PAG RE’s compl
