Viva Industrial Trust, which holds business parks and other industrial property, aims to raise $463.3 million in a listing on the local exchange next month.
The trust's manager, Viva Industrial Trust Management, said it will launch its initial public offering (IPO) of 211.7 million stapled securities at 78 cents a piece. This works out to $165.2 million.
Mr Tong Jinquan, the chairman of the cornerstone investor Shanghai Summit Property Development, will subcribe to 256,410,000 stapled securities, worth $200 million in the offering, while $98.2 million worth of stapled securities will go to sponsors Ho Lee Group Trust and Kim Seng Holdings and a unit of property developer United Engineers.
Viva Industrial Trust comprises stapled securities from Viva Industrial Reit Estate Investment Trust and Viva Industrial Business Trust.
The trust is promising a distribution yield of 8.8 per cent for 2014 and 9 per cent in 2015.
Its portfolio will comprise the UE Bizhub East and Technopark@Chai Chee business parks and logistics facility Mauser Singapore. It will also have a pipeline of six properties from its sponsors.