Dividend Chaser on Croesus Retail IPO rises on trading debut

(From Article)

Croesus Retail Trust, a retail business trust with assets in Japan, gained on its first day of trading day as investors turn to higher-yielding assets.

The shares rose 23% to $1.145 as of 2:06 p.m. in Singapore trading, from the 93 cents offer price. They started trading at 2 p.m. and the share sale was 22.4 times subscribed. Croesus Retail is backed by Japan’s Daiwa House Industry Co. and Marubeni Corp., which have contributed assets to the trust.

Business and property trusts have dominated Singapore’s IPO market in the past year as high-yielding assets gained popularity amid low interest rates. REITs raised $4.2 billion, or 69%, of the $6.1 billion of stock sold in Singapore IPOs in the past 12 months, according to data compiled by Bloomberg. The measure tracking REITs in Singapore offers a 4.3% dividend yield, compared with 2.9% for the Straits Times Index.

“This type of yield is very attractive in this environment,” said Vikrant Pandey, a Singapore-based analyst at UOB Kay Hian Pte. “There is some interest coming from the Japanese side as well so vehicles that have exposure to Japan is also in favor.”

Croesus Retail’s holdings were valued at about 52.5 billion yen ($657.6 million) as of March, the business trust said. The assets include Aeon Town Moriya, Aeon Town Suzuka, Luz Shinsaibashi and Mallage Shobu. The properties have about 180,622 square meters (1.9 million square feet) of leasable space, according to the trust.