Perennial China Retail Trust To Raise S$1.1 billion In S’pore IPO

Perennial China Retail Trust, a unit of property investment firm Perennial Real Estate, on Thursday said that it aimed to raise S$1.1 billion through an initial public offering via a business trust in Singapore, making it the first of several big ticket listings planned in the city state this year.

In a prospectus filed with the Monetary Authority of Singapore, Perennial China Retail Trust said that it will offer a total of 1.1 billion shares at an offer price of S$1 per unit.

The 1.1 billion units include 660.2 million units in placement to institutional investors and the public and another 432 million units to cornerstone investors.

The public offer opens March 8 with listing aimed for March 16.

So far this year, the biggest IPO in Singapore has been Thailand-based rubber processing company Sri Trang Agro Industry PCL, which raised S$336 million via a Singapore IPO.

If successful, the Perennial real-estate investment trust’s Singapore IPO will be the first large public offering ahead of the near-US$6 billion IPO of Hutchison Port Holdings Trust, which is also being planned to be launched as a business trust. According to people familiar with the situation, Hutchison’s IPO is also due in March.

People familiar with the situation have earlier said that Temasek-linked Mapletree Commercial Trust is also looking to raise up to US$1 billion (S$1.3 billion) in an IPO in late March or April.

CapitaMall Trust’s former chief executive Pua Seck Guan is the founder of Perennial Real Estate, which engages in real estate and real estate-related activities, including fund management, asset management and retail management

In recent years, Singapore has been one of the preferred destinations for REIT or business trust listings among property developers looking to raise funds.

Last year several big companies held REIT listings, including the S$1.2 billion IPO by Mapletree Industrial Trust and Sabana Sharia’ah Compliant Industrial REIT’s S$666 million IPO.

Perennial China Retail Trust said that the initial property portfolio of the business trust will be some of its malls in China and that the trust will offer “pure-play” exposure in the expected growth in retail rental and capital values in China, which is driven by ongoing urbanization of the population base and growth in disposable incomes.

The company said that the proceeds would be used toward financing acquisition of shopping malls in China and for general corporate working purposes.

Insurance companies AIA Group and Prudential, CBRE GRES, which manages more than US$2.5 billion of global property securities, and asset management company Lion Global Investors are among the cornerstone investors.

DBS, Goldman Sachs and Standard Chartered are advising Perennial on the IPO.

Source : Today – 25 Feb 2011

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