SINGAPORE — Singapore developer Soilbuild Group Holdings launched yesterday a S$457.5 million initial public offering of its business space assets, pricing its units at S$0.78 apiece, the lower end of its indicative range.
The IPO comes two weeks after two real estate investment trusts had somewhat mixed fortunes on their debut, with SPH REIT gaining 9 per cent but OUE Hospitality Trust ending flat.
Soilbuild Business Space REIT (Soilbuild REIT), which owns two business parks and five industrial properties, is offering 586.5 million units. The placement tranche comprises 524 million units and the public offer 62.5 million units. Soilbuild had previously set an indicative price range of S$0.77 to S$0.80 per unit.
At S$0.78, the REIT offers a dividend yield of 7.7 per cent based on projections for fiscal 2014.
Soilbuild and founder Lim Chap Huat will hold an interest of about 27 per cent in the REIT post-IPO, the company said.
According to DTZ Debenham Tie Leung (SEA), the REIT offers the largest exposure to the business park segment compared with other Singapore-listed REITs. It has the highest proportion of business park assets — 42.5 per cent by purchase price compared with 8 per cent to 21 per cent for other listed Singapore industrial REITs.
The IPO portfolio is valued at S$935 million, with an aggregate gross floor area of more than 3.2 million sq ft as of end-June.
The IPO closes on Aug 14, with listing scheduled for Aug 16.
Citigroup, DBS Group and Oversea-Chinese Banking Corp are managing the offering. With Agencies
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