Elite Commercial REIT IPO

A Happy New Year and a new REIT IPO. Here are articles from news articles and bloggers who wrote about this.

IPO details from The Business Times

ELITE Commercial Reit braved the choppy market to launch its initial public offering (IPO) on Tuesday, pricing its units at £0.68 or S$1.21 per unit, which will translate to a forecast distribution yield of 7.1 per cent for 2020 and 7.2 per cent for 2022.

This is the first pound-denominated Reit listing in Singapore in what could pave the way for more UK-focused Reits to list here, including new asset classes such as student accommodation.

The retail and placement tranches, together with the cornerstone units - the latter mostly taken up by private banking and wealth management clients of UBS, Bank of Singapore, and CIMB - will raise gross proceeds of about £130.9 million in all.

The retail tranche represents just 5 per cent of the offering, which management told reporters in an interview on Tuesday is a function of the "small" offering size.

There is, however, institutional participation from the existing investors in the private trust that holds the properties. All have agreed to roll over their existing stakes into the listed Reit vehicle.

These include investment holding company Kim Seng Holdings, formerly a sponsor of Viva Industrial Trust; as well as Apricot Capital, the private investment firm of Super Group's Teo family; LB Venture Capital, a wholly-owned unit of the Lian Beng Group; and Partner Reinsurance Asia, a UK-based reinsurance company.

Closing date for applying to the IPO is 4 February 2020, 12pm

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