ARA gets SGX approval to list yuan-denominated REIT

Real estate management firm ARA Asset Management (ARA) has received approval from the Singapore Exchange (SGX) to list a yuan-denominated real estate investment trust (REIT) in the city state.

The Dynasty Real Estate Investment Trust (Dynasty REIT) will be the first share sale in Singapore to be denominated in the Chinese currency.

It will also be the second initial public offering (IPO) denominated in yuan outside mainland China.

ARA, which is partly owned by Hong Kong tycoon Li Ka Shing, did not disclose the amount in plans to raise from the listing but reports said the REIT could raise as much as US$640 million from its IPO.

The REIT will also offer investors the flexibility to trade its units in either yuan or Singapore dollars via SGX’s dual-currency trading platform.

ARA said that it will inject three commercial properties located in Nanjing, Dalian and Shanghai into Dynasty REIT.

“Dynasty REIT’s portfolio properties in Nanjing, Dalian and Shanghai are well placed to ride on the wave of urbanisation and has the potential to generate attractive rental and capital growth,” ARA’s chief executive officer John Lim said in a statement.

The REIT’s sponsor added that the proposed IPO is still being reviewed by the Monetary Authority of Singapore.

Currently, ARA manages six REITs in three jurisdictions.

These include Singapore-listed Suntec REIT and Cache Logistics Trust.

In Hong Kong, ARA was behind the listing of Hui Xian REIT which is the other yuan-denominated IPO outside China.

The REIT raised US$1.6 billion from its offering in Hong Kong last year.

Source : Channel NewsAsia – 14 Sep 2012

COMMENTS