Media group Singapore Press Holdings plans to raise at least S$523 million by spinning off some of its property assets via a real estate investment trust (REIT), according to a preliminary prospectus filed on Tuesday.
Called SPH REIT, the trust’s assets will include the upmarket Paragon mall on the prime shopping belt of Orchard Road and the suburban Clementi Mall.
SPH expects gross proceeds of between S$523 million and S$554 million based on the price range of S$0.85 to S$0.90 per REIT unit.
SPH REIT is offering 308,884,000 units, which consists of an international placement of 224,902,000 units to investors, including institutional and other investors in Singapore, and an offering of 83,982,000 units to the public in Singapore.
Cornerstone investors will subscribe for an aggregate of 251,000,000 units. The Cornerstone investors are Great Eastern Life Assurance Company Limited, Hong Leong Asset Management Bhd, Morgan Stanley Investment Management Company, Newton Investment Management and Norges Bank. None of the Cornerstone investors individually holds 5% or more of the units in issue after the offering.
The REIT is expected to have a distribution yield of between 5.79 and 6 percent in 2014.
Source : Channel NewsAsia – 9 July 2013