Sabana Reit is planning to raise about $600 million in an initial public offering on the Singapore Exchange in the first syariah-compliant listing here, a person familiar with the situation said yesterday.
The company – poised to become the largest syariah-compliant real estate investment trust in the world – is planning to launch the offering by the end of the year, the source told Dow Jones Newswires.
Sabana Reit is planning to acquire a portfolio of properties worth about $850 million and the company received a conditional eligibility-to-list letter from the SGX on Friday, the source said. Office buildings cum warehouses, logistics centres and chemical facilities may form part of the property portfolio.
Singapore has been pushing for the development of Islamic finance, encouraging companies to offer a range of syariah-compliant products including bonds and other investment products such as Reits.
Syariah Reits differ from conventional Reits in the type of assets held by the trust – their portfolio properties must have no connection to activities such as gambling, or products such as alcohol or pork.
Singapore logistics firm Freight Links Express Holdings on Monday said it planned a $193 million sale and leaseback of five properties to its unit Sabana Investment Partners, which owns Sabana Reit.
Freight Links, through its 51 per cent stake in Sabana Investment Partners, said it would participate in Sabana Reit’s IPO.
Source : Today – 13 Oct 2010