Singapore IPO of Elite Commercial Reit to raise up to $230m

The offer price for the first Reit denominated in British pounds to list here has been set at £0.68 per unit.

With this price, Elite Commercial Reit's proposed Singapore initial public offering (IPO) will raise around £119.5 million to £131.2 million (S$209.3 million to S$229.7 million), based on a total offering size of 175.7 million to 192.9 million units, according to a term sheet yesterday seen by The Business Times.

It will follow four foreign commercial Reits that listed in Singapore last year - ARA US Hospitality Trust, Eagle Hospitality Trust, Prime US Reit and Lendlease Global Commercial Reit.

Elite Commercial Reit has an initial portfolio comprising 97 mainly freehold properties in Britain with a total appraised value of £319.1 million.

A quarter of the properties - by rental income - are in London, with the rest in second-and third-tier cities across Britain, including Glasgow and Cardiff.

The Reit's sponsors are Elite Partners Holdings, the investment holding firm for Elite Partners Group, Ho Lee Group and Sunway RE Capital, a wholly owned subsidiary of Sunway, one of Malaysia's largest conglomerates.

The IPO's Singapore public offer will run from Jan 28 to Feb 4, and is expected to raise "at least" £3.3 million to £3.9 million, equivalent to some 3 per cent of the total offering size, the term sheet stated.

THE BUSINESS TIMES

A version of this article appeared in the print edition of The Straits Times on January 21, 2020, with the headline 'S'pore IPO of Elite Commercial Reit to raise up to $230m'. Print Edition | Subscribe