Overseas Union Enterprise Ltd. (OUE),
which is buying California’s tallest building, is seeking to
raise as much as S$614 million ($481 million) for a real estate
and business trust in Singapore.
The real estate company will offer 434.6 million shares to
the public and institutions, and an additional 247.2 million to
cornerstone investors at 88 Singapore cents to 90 Singapore
cents apiece, it said in a prospectus filed with the city-state’s central bank. The trust, structured as a stapled
security, will include a downtown Singapore hotel and mall.
OUE Hospitality Trust aims “to maintain and grow an
investment portfolio of hospitality and hospitality-related
assets primarily in Singapore, and to extend the portfolio to
include other places where suitable opportunities arise,” it
said in the prospectus.
REITs and business trusts were the biggest fundraisers in
Singapore’s initial public offering market in the past year,
raising $4.16 billion, or 67 percent, of the $6.2 billion of
stock priced, according to data compiled by Bloomberg. Singapore
Press Holdings Ltd. (SPH) said yesterday it is seeking to raise as
much as S$504 million in an initial stock sale of its retail
assets.
OUE’s REIT will offer a yield of as much as 7.2 percent
based on earnings projections for 2013, and 7.5 percent for
2014, it said in the document. Singapore Press, the newspaper
publisher that owns the Paragon mall along the city’s shopping
belt, said its REIT will offer a yield of as much as 6 percent
based on fiscal 2014 projections.
Shares Rise
OUE shares climbed 2.9 percent to S$2.85 at the close in
Singapore, a three-week high.
The company has identified three properties, a business
hotel next to the Singapore airport and two hospitality assets
in China, which could be offered to the trust, according to the
prospectus. The properties, which have a total valuation of
S$413 million as at Dec. 31, could potentially double the number
of hotel rooms owned by the trust, the document states.
Singapore’s property trusts, Asia’s second-worst performers
this year, are well-positioned to weather an increase in
interest rates as they diversify their funding sources,
Australia New Zealand Banking Group Ltd. (ANZ) said June 27. The
average debt maturity of Singapore REITs has risen to four to
five years from three years, it said.
The measure tracking REITs in Singapore fell 5.2 percent
this year, compared with the 0.7 percent increase in the
Singapore benchmark Straits Times Index. (FSSTI)
OUE said earlier this year it’s buying the U.S. Bank Tower
in Los Angeles, the tallest in the West Coast state, for $367.5
million as it expands beyond its base in Singapore.
OUE is controlled by Executive Chairman Stephen Riady, a
son of Mochtar Riady, who controls Indonesia’s Lippo Group.
Lippos’s businesses include real estate, financial services and
food across Asia.
The share sale is managed by Credit Suisse Group AG,
Goldman Sachs Group Inc. and Standard Charterd Plc.
To contact the reporter on this story:
Joyce Koh in Singapore at
jkoh38@bloomberg.net
To contact the editor responsible for this story:
Philip Lagerkranser at
lagerkranser@bloomberg.net
OUE Seeks Up to S$614 Million in Singapore Trust Share Sale
Không có nhận xét nào:
Đăng nhận xét