Lippo to raise $110.92m in SGX Reit listing
THE real-estate arm of Indonesian conglomerate Lippo Group is raising up to $110.92 million with the listing of a property trust called First Real Estate Investment Trust (First Reit) on the main board of the Singapore Exchange, according to a preliminary prospectus filed yesterday.
PT Lippo Karawaci Tbk, the largest listed broad-based property company in Indonesia, is offering 140.40 million units at an indicative range of 68 cents to 79 cents per unit.
The initial asset portfolio of First Reit, which will be managed by Bowsprit Capital Corp, will comprise Siloam Hospitals Lippo Karawaci, Siloam Hospitals West Jakarta, Siloam Hospitals Surabaya, and Imperial Aryaduta Hotel & Country Club.
All these properties are worth up to $257 million, making First Reit the first Singapore-listed Reit to have Indonesian-based assets. Each of the property will be leased to PT Lippo Karawaci Tbk.
Lippo, which is controlled by Indonesia’s Riady family, said the trust was established with the aim of owning and investing in diversified healthcare and related assets in high-growth markets in Asia, including Indonesia, Singapore, China, Malaysia, Thailand and Hong Kong.
‘First Reit seeks to invest in health care and healthcare-related assets that are positioned to capitalise on the growing demand for healthcare services in Asia,’ the prospectus said.
In fact, the group has already started the process of identifying and evaluating assets for future acquisition by First Reit.
The Reit manager has also entered into non-binding memoranda of understanding (MOU) with three companies managed by Singapore-listed Pacific Healthcare Holdings Ltd. This is related to the proposed acquisition and leaseback of two Singapore nursing homes, as well as a Singapore hospital. It has also entered a non-binding MOU with PT Nusautama Medicalindo in connection with the proposed purchase and leaseback of an Indonesian hospital.
First Reit manager is presently negotiating the financing and the broad lease terms with regard to the potential acquisition and leaseback of these properties. The manager intends to use a combination of debt and equity to fund future acquisitions, property enhancements and capital expenditure.
The group is forecasting a distribution yield of between 9.57 and 8.24 per cent in 2007.
Merrill Lynch and Oversea-Chinese Banking Corp are joint lead managers for the listing of First Reit.
Source : Business Times - 27 Oct 2006
Loading ...
Post a Comment
Tell me a bit about yourself; who you are, where you're from, what information you would like to see on this site. As I continue to provide you with Singapore property happenings, your feedback will encourage me to post more frequently. Thank you.