* Cheung Kong/Hutchison to hold under 30 pct of hotel trust
* IPO cash for buying hotels from Cheung Kong/Hutchison
HONG KONG, Oct 11 (Reuters) - Property firm Cheung Kong(Holdings) Ltd , owned by billionaire Li Ka-shing'sfamily, plans to separately list its hotel business by way of aninvestment trust to free up capital for new investments, whilerealising the value of the hotels.
The trustee-manager of Horizon Hospitality Investments andHorizon Hospitality (Holdings) applied to the Hong Kong stockexchange on Thursday for the listing, Cheung Kong said in afiling to the exchange.
Immediately following the completion of the proposedtransaction, Cheung Kong and its telecoms-to-ports conglomerateaffiliate, Hutchison Whampoa Ltd , will in aggregatehold less than 30 percent of the proposed investment trust.
Terms for a planned global offering have not be been fixedbut the cash to be raised from the offer would be used to partlyfund the acquisition of hotel assets from Cheung Kong andHutchison with total gross rental area of 3.32 million squarefeet, it added.
Shares of both Cheung Kong and Hutchison underperformed thebroader market on Thursday, ending down 1.6 percent and 1.2percent, respectively, while the blue chip Hang Seng Index
was up 0.4 percent.
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(Reporting by Alison Leung; Editing by Mark Potter)
Keywords: CHEUNGKONG HOTELS/