Far East Hospitality Trust

[Musicwhiz]

*Please visit website for full article.

The Straits Times
www.straitstimes.com
Published on Jul 21, 2012
Pre-marketing begins for Far East Reit's $700m IPO

HONG KONG - Far East Reit, a hospitality trust launched by Singapore's largest privately owned property developer, yesterday started pre-marketing an initial public offering (IPO) of up to $700 million.

It is betting on demand from yield-hungry investors burnt by volatile global markets.

With interest rates around the world hovering near record-lows, the fixed return on real estate investment trusts (Reits) are helping lure investors amid an uncertain outlook for equities.

The MSCI World Index has fallen nearly 7 per cent since its March peak because of concerns over Europe's debt crisis and China's economic slowdown.

The Reit, which owns hotels and serviced residences in Singapore, is being marketed at a yield of 6 to 6.5 per cent, said a source with knowledge of the deal who was not authorised to speak publicly on the matter.

The yield is slightly below the 6.63 per cent average for all Reits listed in Singapore.

'It's still a relatively risk- averse environment so Reits are something that people are looking at because they give good yields,' said Mr Lee Wee Liat, head of property research at BNP Paribas Securities (Asia) in Hong Kong.

'Sentiment has been pretty sizeably affected by the slowdown in China recently, so the interest is diverted to South-east Asia and Singapore as a capital- raising platform.'

The yield for the Far East Reit compares with about 7.9 per cent offered for Ascendas Hospitality Trust's deal this week and 6 per cent for CDL Hospitality Trust.
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[lonewolf]

According to the Far East Hospitality site listed 8 hotels and 9 serviced apartments.

Hotels: Orchard Parade, Quincy Hotel, Elizabeth Hotel, Albert Court Hotel, Changi Village Hotel, Landmark Village Hotel, East Village Hotel, Oasia Hotel

Serviced Apartments: Orchard Scotts Residences, Orchard Parksuites, Regency House, Far East Plaza, Leonie View, Central Square Village Residences, Riverside Village Residences, Hougang Village Residences, West Coast Village Residences

Some briefs I read mentioned that only 7 hotels and 4 serviced residences will be included. We know the assets of Orchard Parade Holdings will be injected in this REIT and those are Orchard Parade, Albert Court and Central Square Village Residences. So what are the other properties that will be injected into the REIT?

[pianist]

east village hotel is the one caught fire this week rite?

[ngcheeki]

According to the Far East Hospitality site listed 8 hotels and 9 serviced apartments.

Hotels: Orchard Parade, Quincy Hotel, Elizabeth Hotel, Albert Court Hotel, Changi Village Hotel, Landmark Village Hotel, East Village Hotel, Oasia Hotel

Serviced Apartments: Orchard Scotts Residences, Orchard Parksuites, Regency House, Far East Plaza, Leonie View, Central Square Village Residences, Riverside Village Residences, Hougang Village Residences, West Coast Village Residences

Some briefs I read mentioned that only 7 hotels and 4 serviced residences will be included. We know the assets of Orchard Parade Holdings will be injected in this REIT and those are Orchard Parade, Albert Court and Central Square Village Residences. So what are the other properties that will be injected into the REIT?

Based on the OPH circulars to shareholders on the proposed resturcting, in appendix B shows the list of initila portfolio in the Far East H-Trust are:

Hotels:
1. Albert Court Village
2. Changi Village Hotel
3. The Elizabeth Hotel
4. Landmark Village Hotel
5. Oasia Hotel
6. Orchard Parade Hotel
7. The Quincy Hotel

Service Residences
1. Central square Village Residences (CSVR)
2. Hougang Village Residences
3. Regency House
4. Riverside Village Residences

Hence, East Village Hotel is not in the list of Hotels in the initial portfolio.

For your information, after the listing of the REIT all the hospitality assets listed in the website i.e. 8 Hotels including East village Hotel and 10 Service Residences ( including Leonie View, Orchard parksuites, Orchard Scott Residences, Far East Plaza, West Coast village Residences and Sri Tiara, KL Malaysia) will be managed by Orchard Parade Holdings or Far East Orchard after the name changed.

[intellect]

So far, feedback from hotel guests (overseas business colleagues and associates) about the Albert Court Hotel & the Villages related hotels is that the amenities are not well maintained.

[pianist]

i just know the occupancy rate at albert court is more than 90%

[ngcheeki]

Far East Hospitality Trust prospectus is out this evening.

http://masnet.mas.gov.sg/opera/sdrprosp....O?OpenView

[Musicwhiz]

*For the full article, please refer to the website.

The Straits Times
www.straitstimes.com
Published on Aug 04, 2012
Far East out to raise $718m in hospitality trust IPO
Preliminary prospectus projects yield for next year to be between 6.3% and 6.8%

By Jonathan Kwok

FAR East Organization, one of Singapore's biggest developers, is seeking to raise as much as $717.6 million in an initial public offering (IPO) of a Singapore hospitality trust.

The Far East Hospitality Trust will own seven local hotels such as Orchard Parade Hotel and Changi Village Hotel, as well as four serviced residences like Riverside Village Residences and Central Square Village Residences.

It is offering 329.4 million stapled securities to retail and institutional investors, to be priced between 86 cents and 93 cents each.

Ten cornerstone investors, including Aberdeen Asset Management Asia, AIA Group and NTUC Income Co-operative, have already agreed to subscribe to a combined 376.3 million units.

The offering will also include an over-allotment option of 65.9 million units. Assuming this option is fully exercised and including the cornerstone units, the IPO could raise $663.6 million to $717.6 million, depending on the issue price.

A preliminary prospectus lodged yesterday with the Monetary Authority of Singapore did not provide an indicative timetable for the listing. But it did project that the yield of the vehicle for next year will be between 6.3 per cent and 6.8 per cent, depending on the final pricing.

"The Singapore hospitality sector is expected to benefit from the strong growth of the Singapore economy and increasing tourist arrivals, with incoming tourism receipts expected to grow at up to a rate of 8.1 per cent from 2011 to 2012, according to CBRE," said the prospectus.

"Far East Hospitality Trust has 2,163 hotel rooms and 368 serviced residence units in its portfolio, offering investors an opportunity to invest in one of the largest portfolios of hospitality assets in Singapore by asset value."

DBS Bank, Goldman Sachs and HSBC are the joint financial advisers, global coordinators and issue managers.
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[pianist]

i just wonder how did they manage to clinch 10 cornerstone investors so easily?

[LionFlyer]

http://www.businesstimes.com.sg/breaking...end-source

SINGAPORE - Singapore's Far East Hospitality Trust, which owns hotels and serviced residences, priced its initial public offering at the top end of an indicative range, signalling strong demand for the offer that could raise S$717.6 million (US$575.12 million), sources said.
Far East Hospitality plans to sell stapled securities at S$0.93 each, representing the top of the indicated S$0.86-S$0.93 range, two sources with direct knowledge of the matter said.
"The demand is very very strong," said one of the sources, who declined to be named because he was not authorised to speak to the media.
According to a prospectus, the trust plans to sell 329.4 million stapled securities to institutional and public investors, and a total of 376.3 million units to cornerstone investors such as Aberdeen Asset Management and AIA Group .