a-iTrust : UOBKH
Singapore’s First Listed Indian Property Trust
a-iTrust, Singapore’s First Listed Indian Property Trust has launched its IPO on 25th July 2007 with an initial yield of 4.75%. The initial portfolio comprises of four industrial assets in India, with a total portfolio size of S$932.5m.
Strategic assets with quality tenants. A-iTrust’s four world class IT parks, namely International Tech Park Bangalore (ITPB), International Tech Park Chennai (ITPC), CyberPearl (Hyderabad) and The V (Hyderabad) comprise of 13 predominantly multi-tenanted buildings. The properties occupy a total Super Built-up area (SBA) of 4.25m sf and have an overall portfolio occupancy of 95%. The properties are supported by a host of ancillary facilities and facilities with a significant portion of their tenants comprising of leading MNCs.
Characteristics of a REIT, but not one. a-iTrust is a business trust and not a REIT, but will however take after characteristics of a REIT. Management has committed to distribute 100% (min 90% for REIT) of distributable income from listing date to FY09, and at least 90% thereafter, as well as voluntarily limit its gearing to 35% of deposited property or 60% if credit rating is obtained (similar to a REIT). As a business trust, it can however take on a maximum of 20% property development activities of the trust property, unlike a REIT, whose development activities are capped at 10%.
Unique growth model. The trust adopts a unique growth model comprising of organic growth, an in-built development pipeline on existing land within its property portfolio, and the Trustee-Manager’s three-pronged external acquisition strategy. Its acquisition strategy includes: 1) Right of First Refusal (ROFR) of properties in India from Ascendas India Development Trust (AIDT); 2) ROFR of properties in India from Sponsor; and 3) third-party acquisitions.
On its in-built development pipeline, the completion of the second building in ITPC, the Crest (due completion in Aug 07), as well as the completion of the fifth building in The V (due completion in Sep 07), will see an addition of 0.73m sf and 0.38m sf of SBA respectively. Over the next three years, we will also see an increase in SBA by 5.3m sf through the development of several other buildings.