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Viva Industrial Trust
26-09-2013, 05:54 PM. (This post was last modified: 26-09-2013, 05:56 PM by felixleong.)
Post: #1
Viva Industrial Trust
http://www.todayonline.com/business/viva...-spore-ipo

SINGAPORE — Viva Industrial Trust plans to offer a 2014 dividend yield of about 8.8 per cent in an initial public offering that will raise as much as S$375 million in Singapore, according to people with knowledge of the matter.

The trust, which will be backed by three industrial properties, kicked off its pre-marketing process yesterday and plans to list on the Singapore Exchange next month, they said.

They added that more than half of the planned offering has been taken up by institutional buyers who agreed to act as cornerstone investors.

These investors usually commit to hold their shares for a specific period and often make an IPO more attractive to other investors.

Viva’s proposed cornerstone investors are likely to commit to holding their stakes for at least six months, they said.

Viva’s initial portfolio — 78 per cent of which is to be business park property — is slated to include UE BizHub East, a mixed-use development comprising two business park buildings, a 251-room hotel and a convention centre.

In July, the trust signed a conditional S$518-million deal to buy UE BizHub East from United Engineers. The deal would go through only if the trust successfully lists, United said in July.

This property, together with two other developments in the Tuas and Chai Chee areas, will be included in the trust’s holdings, the people said. Standard Chartered, Bank of America’s Merrill Lynch unit and HSBC Holdings are working on the share sale.

Mr Wilson Ang, Chief Executive Officer of the trust’s manager, declined to comment.

Viva’s IPO plan is the latest in a series of REIT and business trust listings on the Singapore bourse, which has dominated Asia’s trust listings and where REITs and business trusts this year have accounted for US$3.76 billion (S$4.7 billion) out of a total US$4.24 billion of new share offerings. AGENCIES

8.8% yield is pretty high, I think UE (united engineers) are in a hurry to sell out their assets to raise cash
their previous over paying of WBL seems to be haunting them now as they seem desperate... even after the recent rights issue they still need more $$

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26-09-2013, 06:17 PM.
Post: #2
RE: Viva Industrial Trust
(26-09-2013, 05:54 PM)felixleong Wrote: 8.8% yield is pretty high, I think UE (united engineers) are in a hurry to sell out their assets to raise cash
their previous over paying of WBL seems to be haunting them now as they seem desperate... even after the recent rights issue they still need more $$

But they also entered an agreement recently to buy HP's building for $402mil leh... Don't seem to be behaving like you thought...Tongue
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26-09-2013, 06:27 PM.
Post: #3
RE: Viva Industrial Trust
I see, thanks
any idea whats UE's gearing level like after this purchase?

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26-09-2013, 08:36 PM. (This post was last modified: 26-09-2013, 08:43 PM by KopiKat.)
Post: #4
RE: Viva Industrial Trust
(26-09-2013, 06:27 PM)felixleong Wrote: I see, thanks
any idea whats UE's gearing level like after this purchase?

From the agreement annc,

The Consideration will be wholly satisfied in cash, and will be funded by internal resources and external borrowings.

After the Rights, Gearing dropped from 1.86 to 1.10 (Proforma Q113). How much higher it goes after this transaction, depends on how much new debts they take on.
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26-09-2013, 10:25 PM. (This post was last modified: 26-09-2013, 10:25 PM by felixleong.)
Post: #5
RE: Viva Industrial Trust
thanks a lot for the info man, you are really very helpful

1.10 is still pretty high, kinda makes me worried if they take on more debt

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27-09-2013, 09:30 AM. (This post was last modified: 27-09-2013, 09:30 AM by guru.)
Post: #6
RE: Viva Industrial Trust
Any ides is the prospectus is out? Was wondering whether the high yield was to compensate for the relatively shorter tenure of the land.

Any ides is the prospectus is out? Was wondering whether the high yield was to compensate for the relatively shorter tenure of the land.

Any ides is the prospectus is out? Was wondering whether the high yield was to compensate for the relatively shorter tenure of the land.

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27-09-2013, 05:43 PM.
Post: #7
RE: Viva Industrial Trust
Can only consider if the yield is more than 9%, otherwise there are many other good ind. reits with better assets , though with sightly lower yields.
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27-09-2013, 06:00 PM.
Post: #8
RE: Viva Industrial Trust
must see how much is the gearing % and if there's any discount to book value
have to wait for the details ^^

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28-09-2013, 02:37 PM.
Post: #9
RE: Viva Industrial Trust
Information for this Viva Trust and its UE Biz Hub can be gleaned from the United Engineers Press Release - http://unitedengineers.listedcompany.com...4E7B.2.pdf - released a few months ago.

1) UE Biz Hub East is on 30 + 30 years land lease from 2008.

2) Viva Trust is a stapled REIT + Business Trust.

3) UE may subscribe for 5% stake in the stapled reit and 10% stake in the Manager.

4) Any idea on who is Viva Trust sponsor ?

(Not Vested in UE)
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28-09-2013, 04:15 PM.
Post: #10
RE: Viva Industrial Trust
(28-09-2013, 02:37 PM)Nick Wrote: 4) Any idea on who is Viva Trust sponsor ?

From CIMB report dated 5-Jul-13,

United Engineers Ltd has proposed plans to divest its mixed-use development UE BizHub East in Changi Business Park for $518 million. The group's wholly-owned subsidiary United Engineers Developments (UED) has entered into a conditional put and call option agreement with Viva Industrial Trust Management (VITM), in its capacity as the manager of the proposed Viva Industrial Reit (real estate investment trust), for the sale of the property. Talk in the market is that the proposed Viva Industrial Reit is also acquiring Technopark @ Chai Chee from CapitaLand for about $200 million and a property in Tuas from another party. The proposed Reit is said to be backed by Tan Kim Seng, the founder and former chairman of KS Energy. (Source: Business Times)
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