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发表于 25-10-2012 08:42:05|来自:新加坡
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http://www.channelnewsasia.com/s ... iew/1233242/1/.html
SINGAPORE: Dynasty REIT's planned initial public offering (IPO) in Singapore has been suspended.
ARA Asset Management, the sponsor of the real estate investment trust (REIT), said the S$1 billion (5.41 billion yuan) IPO would not proceed due to worsening market conditions.
According to ARA, there has been a marked change in investor sentiment given the after market performance of several IPOs.
Fund managers Channel NewsAsia spoke to say investors were likely concerned about future yields for the REIT.
The offering, which closed on Wednesday at 12 noon in Singapore, would have been the country's first dual currency and yuan-denominated REIT.
ARA had planned to inject three Chinese commercial properties in Nanjing, Dalian and Shanghai into the trust.
Dynasty REIT chief executive, Mark Chu, said on a conference call the weakness was "driven by lackluster earnings results by large global corporations in the US and Europe."
ARA Asset Management Group CEO, John Lim, said that while Dynasty REIT did receive substantial support from institutional and retail investors, including cornerstones investors, the weak global markets continue to impede overall demand and is likely impair aftermarket performance.
Mr Lim added that although the demand was there, it was not such that they could create a transaction strong enough to trade in the market.
Hence, due to "the broader reputation of ARA," they have decided not to take this IPO, said Mr Lim.
ARA said the decision was in the best interest for all stakeholders.
Mr Lim said ARA may consider a China-focused REIT at a later date, but there is no available time frame as of now.
Dynasty REIT's assets are in commercial real estate in China.
Based on the IPO document, the annualised distribution yield for the REIT is 6.8 per cent in 2012 and 7 per cent for 2013.
But yields at those levels are only possible with ARA commitment to absorb management fees by the trust's manager for the first five years.
The IPO was due to list in Singapore on 30 October 2012.
ARA is backed by Hong Kong business magnate Li Ka-shing.
- CNA/xq |
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