MEDIA group Singapore Press Holdings (SPH) filed its preliminary prospectus for its retail mall real estate investment trust (Reit) yesterday with the listing widely expected later this month.
The prospectus, which was lodged with the Monetary Authority of Singapore, has ended speculation over the timing of the initial public offering (IPO).
The IPO is expected to raise between $523 million and $554 million, with an offer of 308.9 million units at between 85 and 90 cents each.
SPH will inject Paragon and Clementi Mall into the Reit for $2.5 billion and $570.5 million respectively. The IPO proceeds will be mainly used to acquire the properties, and for transaction costs and property-related expenses.
About 224.9 million units will be offered to institutional and large investors via a placement, while the public tranche will be around 84 million units.
Five prominent cornerstone investors have agreed to take up a separate total of 251 million units. These are insurer Great Eastern Life, Hong Leong Asset Management, Morgan Stanley Investment Management, British firm Newton Investment Management and Norges Bank, which manages the Norwegian Government Pension Fund Global, one of the world's largest sovereign wealth funds.
The Reit could have an annual yield of between 5.79 per cent and 6 per cent, based on projections for the 2014 fiscal year.
It plans to pay distributions every quarter, with the first payout covering the period from its listing date to Nov 30. This will be paid on or before Feb 27 next year.
SPH Reit's manager said in the prospectus that it offers investors exposure to a "high-quality retail property portfolio anchored by Paragon, one of Singapore's most iconic retail malls". It also provides a "unique exposure to Singapore's robust retail sector and strong health-care services sector through Paragon Medical".