JTC seeking manager for upcoming property Reit
SINGAPORE’S industrial landlord JTC Corporation is inviting companies to submit proposals to manage its upcoming real estate investment trust (Reit).
This is another step towards the completion of its divestment plans, first announced in late 2005 - to enable it to focus on strategic industrial developments.
Last October, the statutory board said it would sell its high-rise ready-built properties via a combination of a Reit and a trade sale. In early February this year, JTC announced the appointment of UBS, Goldman Sachs and DBS Group Holdings as advisers for these sale methods.
JTC’s divestment portfolio comprises up to 40 property clusters with an estimated net floor area of 1.7 million sq m and a value in excess of $1 billion, according to its tender documents.
These include flatted factories, ramp-up and stack-up factories, three multi-tenanted business park buildings and a warehouse.
JTC’s chief executive, Mrs Ow Foong Pheng, said in a statement yesterday that the call for proposals would provide a rigorous process for them to find a suitable manager.
‘One of the objectives of our divestment exercise is to promote active competition in the industrial property market in Singapore, so that existing and prospective tenants may benefit from more options and choices,’ she said.
JTC had also said that it will aim to ensure price stability and achieve fair market value for the properties to be sold.
Singapore’s industrial property market is recovering well, with rising rents and demand as developers snapped up government sites put up for sale.
JTC will evaluate expressions of interest from would-be managers based on individual merit.
It is looking for managers with a proven track record of managing a listed or unlisted industrial Reit or property fund globally, or a Reit or property fund in any sector in the Asia-Pacific.
The proposed Reit is expected to be listed on the Singapore Exchange and may include an offering in the United States.
The deadline for submissions is June 1. Shortlisted parties will be invited to participate in later evaluation stages.
Source : Straits Times - 11 May 2007
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