Month: November 2007
LMIR – UOBKH
Issue statistics:
Offer size: 645.469m units (subject to Over-Allotment Option of 58.738m units)
Public Tranche – 20.000m units
Placement Tranche – 625.469m units
Price: S$0.80
NAV per Unit (post-IPO): S$0.91
Forecast Yield: 7.3% (FY08) ; 7.8% (FY09)
Market Cap (post-IPO): S$963.316m
Open: 12 Nov 2007
Close: 15 Nov 2007, 12.00p.m.
Trading: 19 Nov 2007, 2.00p.m. (on “ready” basis)
Lead Manager: UBS, BNP & OCBC
Background
Lippo-Maple Tree Indonesia Retail Trust (LMIR Trust)’r property portfolio comprises seven Retail Malls and seven Retail Spaces, valued at S$1004.7m. As at 30 June 2007, the Retail Malls with a NLA of 219.392 sqm had a weighted average occupancy of approximately 91.6% based on Committed Leases. The Retail Spaces, with total NLA of 94,070 sqm, are master-leased to PT. Matahari Putra Prima Tbk, Indonesia’s largest retailer for an initial term of 10 years with fixed rental growth of 8.0% per annum for the first four years and a revenue sharing formula thereafter.
LMIR Trust’s distribution policy is to distribute 100% of its tax-exempt income and capital receipts from 2007 to 2009, and at least 90% of its tax-exempt income thereafter. Distributions will be paid on a quarterly basis for the three-month periods ending on 31 March, 30 June, 30 September and 31 December each year. The projected DPU for FY08 and FY09 are 5.84 and 6.27 cents respectively.
LMIR – BT
Lippo launches retail Reit IPO, aims to treble size by end-09
Trust comprises 7 Indonesian malls and 7 retail spaces in other malls
THE Lippo Group aims to triple the portfolio size of its latest real estate investment trust (Reit) to $3 billion by end-2009, the Reit’s manager said yesterday.
The Lippo-Mapletree Indonesia Retail Trust (LMIR Trust), which will be the first Singapore-listed Reit to offer exposure to Indonesia’s retail sector, aims to raise $516.4 million from its initial public offering (IPO).
The trust, which has an initial portfolio of seven Indonesian shopping malls and seven retail spaces in other malls, will sell 645.5 million units at 80 cents each.
The trust had earlier gave an indicative range of 78-91 cents a unit for the IPO.
Of the offer, some 625.5 million units have been placed with institutional and other investors – and is 1.6 times subscribed – while the remaining 20 million are being offered to the public.
‘Investors we met during the roadshows welcome this opportunity to participate in Indonesia’s growing retail sector, given Indonesia’s robust economic fundamentals underpinned by a growing and affluent urban middle-class population of about 66 million consumers,’ said Viven Sitiabudi, chief executive of the Reit’s manager.
PT Lippo Karawaci, Indonesia’s biggest listed real estate developer, will hold 27 per cent of the trust after the unit sale, while Singapore’s Mapletree Investments will own 12 per cent, the trust said.
LMIR Trust is projecting a yield of 6.9 per cent for 2007, 7.3 per cent for 2008 and 7.8 per cent for 2009, it said.
The public offer will close at noon on Nov 15 and trading is expected to start on Nov 19 at 2pm.
The trust is listing at a time when market sentiment is poor.
Japanese trust Saizen Reit tumbled 14 per cent on its debut on Friday, while Japan’s Asia Pacific Land delayed its $514.9 million Singapore IPO last week, citing ‘negative market sentiments’.
But Ms Sitiabudi said that she is confident of LMIR Trust’s quality, even as Lippo’s Indonesian hospital trust First Reit, which was listed last December, fell below its IPO price last week.
‘The market goes up and down, but we’re confident of the quality of our product,’ she said.
Lippo president Stephen Riady, who was speaking to reporters at a news conference to launch the trust, said that the group plans to list two to three Reits – worth some US$3-4 billion in all – in Singapore over the next two to three years.
‘These new Reits would most likely be for hotels, offices and for retail malls outside of Indonesia,’ Mr Riady said.
APL – BT
APL Reit puts back IPO, cites market jitters
It says it will list next year as weak price would hike costs, hurt growth
POOR market sentiment has claimed a casualty in APL Japan Trust. The Singapore Exchange aspirant has postponed its planned initial public offering (IPO) here, at a time of volatility in the stock market.
In a statement released yesterday, the real-estate investment trust (Reit) said that it has decided to postpone its IPO to next year, despite a successful book-building exercise which saw sufficient investor-take up. APL said that it plans to go to the markets next year, when the wider financial environment improves.
‘Following a successful road-show where it was evident that investors endorsed the management and strategy, we were confident of being able to list APL Japan Trust,’ said David Tan, CEO of APL Japan Trust Management, in a statement. ‘However the markets are currently unfavourable and even though the fundamentals of our transaction are sound, there is a risk of post-listing price weakness as a result of negative market sentiment.’
He said that weakness in the trust’s unit price after listing would raise its cost of capital and make growth by acquisition more challenging.
William Schoenfeld, president of APL Group, said: ‘Given the possible unit price weakness post-listing as a result of current macro issues, APL Group could not be fully confident of achieving our projections for growth through acquisitions, therefore it is possible that total returns would not commensurate with APL’s past performance.’
The unfavourable outlook in Japan caused by negative consumer sentiment has caused the Tokyo Stock Exchange Reit Index to plunge sharply. Because of this, APL Japan Trust’s prospects were uncertain.
BT understands that the decision to pull the plug was taken at midnight on Thursday. APL Japan Trust – the second Japan-based Reit to seek a listing on the SGX after Saizen Reit – had already received approval from the Monetary Authority of Singapore to list, and its prospectus was scheduled to be registered yesterday.
It had planned to raise between $432.5 million and $514.9 million by offering 411.9 million units, 391.3 million of which would have gone to institutional and other investors in Singapore, and 20.59 million units to the public here priced between $1.05 and $1.25 each.
JPMorgan was the sole financial adviser for the offering, while JPMorgan and Lehman Brothers International were joint global co-ordinators and joint bookrunners.
The initial property portfolio of the Reit comprised nine commercial buildings in Tokyo, Yokohama and Nagasaki. These buildings have an appraised value of $838.8 million and are primarily for retail use.
According to the prospectus, APL Japan Trust forecasted an initial distribution yield of 4.34 to 5.16 per cent per unit and cash distribution growth of about 7 per cent.
Mr Schoenfeld said in a statement: ‘APL Japan Trust was to be APL Group’s first entry into the public markets after building its reputation in Japan for more than 10 years.’
The Reit sponsor, Asia Pacific Land, is a Japanese real estate company managing a real estate portfolio worth over 100 billion yen (S$1.3 billion).
APL’s decision might prove to be prudent. Yesterday, units of Saizen Reit debuted at 94 cents, 6 per cent below their issue price of $1.
The trust, sponsored by Japan Regional Assets Manager, raised $197 million from its IPO, which was about 2.4 times oversubscribed.
The Reit is based on an initial portfolio of 146 residential buildings in 12 Japanese cities, and according to its prospectus would offer a forecast yield of 6.5 per cent in 2008.
APL – BT
Japan’s Asia Pacific Land delays S’pore IPO
SINGAPORE – Tokyo-based Asia Pacific Land, or APL Japan Trust, will postpone a planned US$350 million initial public offering in Singapore after it grew concerned about the performance of the issue after the listing, the company said on Friday.
Asia Pacific Land’s decision comes after a disastrous Singapore market debut by Saizen Real Estate Investment Trust, which fell 14 per cent on its debut on Friday.
Saizen last traded at 86 Singapore cents against its IPO price of $1.00.
APL, which owns 9 properties in Japan, had planned to raise as much as $515 million (US$358 million) through an offer of 411.9 million units at $1.05 to $1.25 apiece, according to a prospectus posted last month.
‘There is a risk of post-listing price weakness as a result of negative market sentiment,’ said APL chief executive David Tan in a statement. ‘Weakness in APL Japan Trust’s unit price post listing would raise its cost of capital and make growth by acquisition more challenging.’
A source involved in the listing said APL had attracted sufficient demand to sell the units within the original price range, but chose to drop the listing so as not to upset investors.
Since APL started marketing its units last month, the price of Japanese-listed Reits had fallen about 12 per cent, he added. JPMorgan and Lehman Brothers were the bookrunners for theAPL listing. — REUTERS
Huflux Water Trust – BT
Hyflux trust sets IPO price range
A BUSINESS trust backed by Singapore water treatment firm Hyflux has set an indicative price range of $0.78 to $0.91 a unit for its Singapore listing, potentially raising $150.15 million, a source told Reuters yesterday.
Hyflux Water Trust, which is based on 13 water treatment plants in China, is selling 165 million units in its stockmarket listing, according to its prospectus. JPMorgan is handling the deal.
At the indicative price, the trust would offer a yield of 4.9 to 5.7 per cent, the source said.
China is thirsty for more clean water to feed its economic growth. For plant builders such as Hyflux, injecting the completed factories into a trust frees up capital for it to expand elsewhere. — Reuters