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PR Newswire
10-11-2010, 06:09 AM
Nov 10, 2010
Sabana Shari'ah Reit set to raise $700m
It will be Singapore's 1st syariah-compliant real estate investment trust
By Francis Chan, Companies Correspondent
SINGAPORE'S first syariah-compliant real estate investment trust (Reit) is set to raise as much as $696.1 million, according to a preliminary prospectus filed yesterday.
The Sabana Shari'ah Compliant Industrial Reit - launched by Sabana Investment Properties, which is 51 per cent owned by logistics firm Freight Links Express - will offer more than 600 million units at between $1 and $1.10 apiece.
Based on the minimum offer price, Reit manager Sabana Real Estate Investment Management has forecast a distribution yield of about 8.45 per cent for next year and 8.48 per cent for 2012.
The Reit's portfolio will initially comprise 15 industrial properties in Singapore, making up an aggregate gross floor area of about 3.2 million sq ft.
They include high-tech industrial facilities in central areas like New Tech Park in Lorong Chuan, another in Tai Seng Drive and chemical warehouses in Penjuru Lane, Gul Drive and Tuas in the west.
Such properties boast leading tenant names in the property sector including City Developments, Ho Bee Investment, the initial public offering (IPO) sponsor Freight Links Express, and other sub-tenants from a diverse range of businesses.
Sources close to the deal told The Straits Times that the Sabana float is likely to hit the Singapore Exchange (SGX) this month.
According to Sabana, the Reit will be managed in a manner that is compliant with syariah - or Islamic law.
It will invest only in syariah-compliant real estate and real estate-related assets and be based on the advice of the syariah advisers, a requirement for all syariah-compliant instruments.
According to its preliminary prospectus, the Reit manager believes that Sabana Reit has adopted a standard of syariah compliance acceptable to investors in Gulf Cooperation Council states.
'The manager is of the view that the growth in Islamic finance industry globally and in South-east Asia will translate into an increase in demand for syariah-compliant financial products, such as listed Reits,' said Sabana.
Sabana is the latest to jump on the IPO bandwagon in what has been a free-flowing pipeline of listings on the SGX in recent months.
Last month, mega IPOs Global Logistic Properties and Mapletree Industrial Trust raised billions of dollars.
In that same month, eight counters debuted on the mainboard - the most IPOs seen in a single month since November 2007, the previous high-water mark for IPOs before the financial crisis hit capital markets around the world.
Earlier this month, STX OSV Holdings - a unit of South Korean shipping group STX - announced it was planning to raise net proceeds of $131.6 million through its IPO.
franchan@sph.com.sg
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Sabana's properties
- The Reit's portfolio will initially comprise 15 industrial properties across Singapore, with an aggregate gross floor area of about 3.2 million sq ft.
- They include high-tech industrial facilities like New Tech Park in Lorong Chuan (photo) and another in Tai Seng Drive, and chemical warehouses in Penjuru Lane, Gul Drive and Tuas.
- Such properties boast leading tenant names in the property sector including City Developments, Ho Bee Investment, Freight Links Express and other sub-tenants from a diverse range of businesses.
Sabana Shari'ah Reit set to raise $700m
It will be Singapore's 1st syariah-compliant real estate investment trust
By Francis Chan, Companies Correspondent
SINGAPORE'S first syariah-compliant real estate investment trust (Reit) is set to raise as much as $696.1 million, according to a preliminary prospectus filed yesterday.
The Sabana Shari'ah Compliant Industrial Reit - launched by Sabana Investment Properties, which is 51 per cent owned by logistics firm Freight Links Express - will offer more than 600 million units at between $1 and $1.10 apiece.
Based on the minimum offer price, Reit manager Sabana Real Estate Investment Management has forecast a distribution yield of about 8.45 per cent for next year and 8.48 per cent for 2012.
The Reit's portfolio will initially comprise 15 industrial properties in Singapore, making up an aggregate gross floor area of about 3.2 million sq ft.
They include high-tech industrial facilities in central areas like New Tech Park in Lorong Chuan, another in Tai Seng Drive and chemical warehouses in Penjuru Lane, Gul Drive and Tuas in the west.
Such properties boast leading tenant names in the property sector including City Developments, Ho Bee Investment, the initial public offering (IPO) sponsor Freight Links Express, and other sub-tenants from a diverse range of businesses.
Sources close to the deal told The Straits Times that the Sabana float is likely to hit the Singapore Exchange (SGX) this month.
According to Sabana, the Reit will be managed in a manner that is compliant with syariah - or Islamic law.
It will invest only in syariah-compliant real estate and real estate-related assets and be based on the advice of the syariah advisers, a requirement for all syariah-compliant instruments.
According to its preliminary prospectus, the Reit manager believes that Sabana Reit has adopted a standard of syariah compliance acceptable to investors in Gulf Cooperation Council states.
'The manager is of the view that the growth in Islamic finance industry globally and in South-east Asia will translate into an increase in demand for syariah-compliant financial products, such as listed Reits,' said Sabana.
Sabana is the latest to jump on the IPO bandwagon in what has been a free-flowing pipeline of listings on the SGX in recent months.
Last month, mega IPOs Global Logistic Properties and Mapletree Industrial Trust raised billions of dollars.
In that same month, eight counters debuted on the mainboard - the most IPOs seen in a single month since November 2007, the previous high-water mark for IPOs before the financial crisis hit capital markets around the world.
Earlier this month, STX OSV Holdings - a unit of South Korean shipping group STX - announced it was planning to raise net proceeds of $131.6 million through its IPO.
franchan@sph.com.sg
--------------------------------------------------------------------------------
Sabana's properties
- The Reit's portfolio will initially comprise 15 industrial properties across Singapore, with an aggregate gross floor area of about 3.2 million sq ft.
- They include high-tech industrial facilities like New Tech Park in Lorong Chuan (photo) and another in Tai Seng Drive, and chemical warehouses in Penjuru Lane, Gul Drive and Tuas.
- Such properties boast leading tenant names in the property sector including City Developments, Ho Bee Investment, Freight Links Express and other sub-tenants from a diverse range of businesses.
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