JTC hires banks for Reit IPO, asset sale
Singapore state-owned industrial landlord JTC Corp said on Wednesday it appointed UBS, Goldman Sachs and DBS as advisers for the launch of an industrial property trust and the sale of other property.
‘As the portfolio is significant, it is envisaged that the exercise will take at least 18 months to complete,’ a JTC spokesman told Reuters on Wednesday.
She declined comment on local newspaper reports that said JTC would divest up to $2 billion (US$1.3 billion) worth of assets, including factories and buildings, by pooling them into a Singapore-listed real estate investment trust or Reit.
A property industry source said assets earmarked for divestment by the government industrial landlord could be worth up to $3 billion.
JTC said in October that it would sell an estimated 1.7 million square metres of its industrial property assets.
The industrial landlord is expected to launch its property trust this year, putting it in competition with a planned Singapore-listed industrial Reit by Australian real estate manager MacathurCook Ltd.
Singapore’s Reit market, Asia’s third largest after Australia and Japan, contains 15 listed property trusts with a combined market value of around US$10.6 billion. JTC, which is also considering divestment options for subsidiaries Jurong International Holdings and Ascendas, said the divestment was part of its planned exit from the development of ready-built industrial facilities, an area that already sees active private sector participation. — REUTERS
Source : Business Times - 31 Jan 2007
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