Tuesday, Jul 22, 2014Tuesday, Jul 22, 2014
Business
 

Lotte Shopping postpones $1.25b Singapore Reit listing

Published on May 2, 2014 2:19 PM
 
A pedestrian walks past the logo of Lotte Shopping Co. department store in Seoul, South Korea, on Oct. 23, 2007. Lotte Shopping Co said it is postponing the listing of an up to US$1 billion (S$1.25 billion) real estate investment trust in Singapore, underscoring lacklustre appetite for initial public offerings (IPOs) in the city state. -- FILE PHOTO: BLOOMBERG

SEOUL/HONG KONG (Reuters) - Lotte Shopping Co said it is postponing the listing of an up to US$1 billion (S$1.25 billion) real estate investment trust in Singapore, underscoring lacklustre appetite for initial public offerings (IPOs) in the city state.

The operator of South Korea's largest department store chain said in a regulatory filing it may reconsider the option if global financial market conditions improve, but is currently looking at a sale and lease back deal through a local public real estate fund as an alternative.

Singapore's IPO market has struggled in recent years. Most big-ticket listings in Asia opt for Hong Kong where there is more robust demand from Chinese and international investors.

IPO deals in Singapore so far this year have had a slow start, just US$773.6 million compared to US$2.46 billion for the same period last year.

 
If you are not a subscriber, you can get instant, unlimited access here