REIT Watch: SPH REIT Raises S$505 Million in IPO, Insiders Say

on Jul 16, 2013


**Singapore Press Holdings Raises S$505 Million in IPO** Tuesday July 16th: Singapore Press Holdings, the owner of Paragon mall, has raised about S$505 million (₤266 million) in an initial public offering of its retail assets, according to two sources quoted by Bloomberg.
SPH REIT has sold to investors 559.9 million shares at S$0.90 apiece, the top end of the marketed S$0.85-S$0.90 range. An overallotment option allows for the sale to be increased by as much as 56 million shares.

At S$0.90 per share, SPH REIT is offering a yield of 5.79 percent based on projections for the fiscal 2014. A number of institutional investors including Morgan Stanley Investment Management and Great Eastern Life Assurance have committed to invest in the real estate investment trust.
**Ascendas REIT’s Q1 Distributable Income Rises 11.3 Percent**
Ascendas, a real estate investment trust investing in business space and industrial properties, said on Tuesday that its first-quarter distributable income had increased by 11.3 percent year-on-year to S$85.2 million (₤44.9 million). Distribution per unit has inched up by 0.6 percent to S$0.0355.

Net property income for the three months to the end of June increased 6.8 percent to S$108 million (₤56.9 million), while gross revenue surged 6.3 percent to S$151 million (₤79.5 million).
“The multi-tenanted portion of A-REIT’s portfolio has a vacancy of about 10 per cent and this would provide significant potential net property income growth when these spaces are leased out in due course,” commented Mr Tan Ser Ping, chief executive and executive director of the REIT’s manager, Ascendas Funds Management.

**Fibra Uno to Acquire 49 Commercial Properties for ₤1.2 Billion**
Fibra Uno, the first listed Mexican real estate investment trust, has signed a deal to purchase a portfolio of commercial properties from MRP Group for 23.155 billion pesos (₤1.2 billion).
In a filing with the Mexican stock exchange the REIT said on Monday that the deal included 49 commercial properties, from which it expected to generate 1.768 billion pesos (₤92.7 million) in annual revenue.

Fibra Uno’s shares were up 2.88 percent at 43.20 pesos on Monday.
!m[Ascendas Posts 11.3% Rise in Q1 Distributable Income](/uploads/story/4040/thumbs/pic1_inline.jpg)
**Milestone to Acquire Multifamily Apartment Community for $40.5 Million**
Milestone Apartments, a real estate investment trust investing in multifamily garden-style residential properties, announced yesterday that it had entered into an agreement to buy Canyon Chase, a 358-unit garden style multifamily apartment community in Denver, Colorado for $40.5 million (₤26.9 million). The asset is currently 96.6 percent occupied and is located in close proximity to several employment centres.
The REIT will finance the deal through a 7-year fixed-term mortgage of some $22.3 million (₤14.8 million) and by drawing on its $50 million (₤33.2 million) revolving credit facility.
**Ascendas REIT’s share price was S$2.24 as of 16.07.2013, 14.14 BST.**
**Fibra Uno’s share price was 41.90 Mexican pesos as of 16.07.2013, 14.26 BST.**
**Milestone Apartments REIT’s share price was S$10.00 as of 16.07.2013, 14.26 BST.**