SPH Prices REIT IPO at S$0.90 per Unit
by Admin on Jul 17, 2013 • 7:01 pm
by Ernie B. Calucag
Media group Singapore Press Holdings (SPH) has priced Wednesday its real estate investment trust (REIT) offering at S$0.90 per unit, at the top end of an indicative range of S$0.85-S$0.90 per unit.
SPH said the final price was settled after seeing strong institutional investor response during the bookbuilding process, amounting to approximately 42 times the number of units offered under the placement tranche.
The media group is expected to raise S$504.0 million on offering of 308.9 million units to institutional and public investors, and 251 million units to cornerstone investors such as Great Eastern Life Assurance Company, Hong Leong Asset Management and Morgan Stanley Investment Management Company.
At S$0.90 per unit, SPH REIT offers a yield of 5.58 per cent and 5.79 per cent for the forecast period 2H2013 and projection year 2014, respectively.
The SPH REIT’s assets will include the luxury Paragon mall in the prime shopping district of Orchard Road and the suburban Clementi Mall.
Paragon and Clementi Mall are valued at S$2.5 billion and S$570.5 million respectively by Knight Frank in February.
The retail tranche for the IPO opens on Wednesday and the listing will be on July 24.
Upon listing of SPH REIT, SPH will remain the single largest unitholder, with approximately 70 per cent stake. The group also plans to distribute a special dividend of S$0.18 to shareholders after the listing.
“The manager will take an active role in managing and enhancing SPH REIT’s properties,” SPH REIT said in the prospectus, adding that it will “assess acquisition opportunities in line with SPH REIT’s investment objective.”
Credit Suisse, DBS and Oversea-Chinese Banking Corp are joint bookrunners for SPH REIT, while CIMB and Nomura are co-lead managers.
More REIT IPOs
Another REIT offering is expected to be finalised in the days to come. Last week, Singapore property firm Overseas Union Enterprise Ltd (OUE) lodged its preliminary prospectus seeking to raise up to S$614.0 million.
According to the prospectus, OUE Hospitality Trust will offer 434,598,000 staple securities to the public and institutions. The offer includes 51.1 million staple securities for the retail investors while another 247,220,000 will go to cornerstone investors.
The listing will hope to raise up to S$614.0 million with an offer price expected to be between 88 S-cents and 90 S-cents per stapled security.
The trust will comprise a real estate investment trust and a business trust. OUE said it will initially inject two assets in the trust- the Mandarin Orchard hotel and the Mandarin Gallery mall along Orchard Road.
REITs raised S$3.4 billion or 68 per cent of the S$5.0 billion of stock sold in Singapore IPOs in the past 12 months, according to data compiled by Bloomberg.
The biggest share sale was the S$1.6 billion raised by Mapletree Greater China Commercial Trust, a REIT that owns assets including the Festival Walk shopping mall in Hong Kong and an office complex in Beijing.
The citystate lists 23 REITs and is the largest REIT market in Asia ex-Japan. Singapore-listed REITs have a combined market capitalisation of S$52.0 billion. Together the 23 REITs provide a diverse mix of local and international property assets that house industrial, commercial, retail, residential and specialised tenants.
More good news coming?
- wong chee tat :)
Wednesday, July 17, 2013
1 in 10 S'pore companies now use RMB to settle trade transactions
1 in 10 S'pore companies now use RMB to settle trade transactions
POSTED: 17 Jul 2013 9:32 PM
Eleven per cent of Singapore companies are now using the Renminbi (RMB) to settle their cross border transactions with China.
SINGAPORE: Eleven per cent of Singapore companies are now using the Renminbi (RMB) to settle their cross border transactions with China.
This is according to a study by banking group HSBC which comes amid China's push to internationalise the currency.
The survey also found that 53 per cent of Chinese businesses would offer discounts of up to five per cent for transactions settled in RMB.
Joseph Arena, head of global trade and receivables finance from HSBC, remarked that these potential cost savings were appealing to Singapore firms as they grapple with escalating fixed and labour costs.
While the RMB has yet to catch on with more Singapore firms, 31 per cent of companies surveyed did foresee themselves picking up the currency in the next five years to mitigate foreign exchange risk and benefit from better prices.
The appointment of the Industrial and Commercial Bank of China (ICBC) as RMB clearing bank in Singapore last year will help Singapore develop as an offshore RMB market.
HSBC's survey covers over 850 companies that conduct international business in China.
- CNA/fa
- wong chee tat :)
POSTED: 17 Jul 2013 9:32 PM
Eleven per cent of Singapore companies are now using the Renminbi (RMB) to settle their cross border transactions with China.
SINGAPORE: Eleven per cent of Singapore companies are now using the Renminbi (RMB) to settle their cross border transactions with China.
This is according to a study by banking group HSBC which comes amid China's push to internationalise the currency.
The survey also found that 53 per cent of Chinese businesses would offer discounts of up to five per cent for transactions settled in RMB.
Joseph Arena, head of global trade and receivables finance from HSBC, remarked that these potential cost savings were appealing to Singapore firms as they grapple with escalating fixed and labour costs.
While the RMB has yet to catch on with more Singapore firms, 31 per cent of companies surveyed did foresee themselves picking up the currency in the next five years to mitigate foreign exchange risk and benefit from better prices.
The appointment of the Industrial and Commercial Bank of China (ICBC) as RMB clearing bank in Singapore last year will help Singapore develop as an offshore RMB market.
HSBC's survey covers over 850 companies that conduct international business in China.
- CNA/fa
- wong chee tat :)
SPH to raise S$504m in REIT IPO
SPH to raise S$504m in REIT IPO
By Wong Siew Ying
POSTED: 17 Jul 2013 2:10 PM
Singapore Press Holdings (SPH) will be raising S$504 million in an initial public offering of its retail-focused real-estate investment trust.
SINGAPORE: Singapore Press Holdings (SPH) will be raising S$504 million in an initial public offering of its retail-focused real-estate investment trust.
According to its prospectus, SPH REIT plans to sell its units at 90 Singapore cents each, representing the top-end of the indicative price range of 85 Singapore cents to 90 cents.
The trust is selling 308.9 million units to institutional and public investors. It has an option to bump up the sale by up to 56 million units.
SPH REIT has secured five cornerstone investors such as Great Eastern Life Assurance Company, Hong Leong Asset Management and Morgan Stanley Investment Management Company who have committed S$226 million for 251 million units.
At 90 cents a unit, SPH REIT is offering a yield of 5.79 per cent based on its projections for 2014.
The trust's assets will include the Paragon mall in Orchard Road and the suburban Clementi Mall.
The public offer for the IPO opens on Wednesday and the listing will be on July 24.
SPH said indication of interest among institutional investors during the bookbuilding process amounted to 42 times the number of units offered under the placement tranche.
- CNA/ac/fa
- wong chee tat :)
By Wong Siew Ying
POSTED: 17 Jul 2013 2:10 PM
Singapore Press Holdings (SPH) will be raising S$504 million in an initial public offering of its retail-focused real-estate investment trust.
SINGAPORE: Singapore Press Holdings (SPH) will be raising S$504 million in an initial public offering of its retail-focused real-estate investment trust.
According to its prospectus, SPH REIT plans to sell its units at 90 Singapore cents each, representing the top-end of the indicative price range of 85 Singapore cents to 90 cents.
The trust is selling 308.9 million units to institutional and public investors. It has an option to bump up the sale by up to 56 million units.
SPH REIT has secured five cornerstone investors such as Great Eastern Life Assurance Company, Hong Leong Asset Management and Morgan Stanley Investment Management Company who have committed S$226 million for 251 million units.
At 90 cents a unit, SPH REIT is offering a yield of 5.79 per cent based on its projections for 2014.
The trust's assets will include the Paragon mall in Orchard Road and the suburban Clementi Mall.
The public offer for the IPO opens on Wednesday and the listing will be on July 24.
SPH said indication of interest among institutional investors during the bookbuilding process amounted to 42 times the number of units offered under the placement tranche.
- CNA/ac/fa
- wong chee tat :)
AVA holds culling exercise at poultry slaughterhouse
AVA holds culling exercise at poultry slaughterhouse
By Leong Wai Kit
POSTED: 17 Jul 2013 3:26 PM
Singapore may be free of bird flu, but it cannot let down its guard against an outbreak here -- that is the message from the Agri-Food & Veterinary Authority (AVA). It held a poultry-culling exercise at a slaughterhouse for the first time, involving 500 chickens.
SINGAPORE: Singapore may be free of bird flu, but it cannot let down its guard against an outbreak here -- that is the message from the Agri-Food & Veterinary Authority (AVA). It held a poultry-culling exercise at a slaughterhouse for the first time, involving 500 chickens.
It takes a few seconds for chickens to be culled via electrocution -- the AVA said the method is humane, and globally approved.
Soonly Food Processing Industries is one of 14 poultry slaughterhouses in Singapore, and every day, the slaughterhouses process about 165,000 chickens and ducks. Workers at the slaughterhouses go through regular training to prepare them for emergencies.
On Wednesday, some workers went through the drills that would kick-in during an outbreak.
First, their health is assessed before they start work -- their temperatures are taken, and staff with fever are not allowed to be in direct contact with chickens. Staff are also given tamiflu to prevent them from developing flu.
They then put on extra protection. On normal days, slaughterhouse workers don masks and gloves at work, but during an emergency, they will wear extra protective gear, including goggles, hair nets and double-layered gloves.
As for the culled birds, the carcasses are packed into biohazard bags and sent for incineration. Vehicles and equipment that have come in contact with the chickens are also decontaminated.
This is AVA's seventh exercise since 2002, and the first that involves a slaughterhouse.
Chew Keng Wah, COO of Soonly Food Processing Industries, said: "Workers also appreciate the value of such an exercise because when we talk to them, different people think of different things. But when you put them through an actual exercise, they know exactly what it is, what the stages are."
AVA said it would continue working with various agencies to improve its contingency plans.
Dr Yap Him Hoo, group director of the quarantine and inspection group at the AVA, said: "The main thing we want to do through this exercise is to train our officers as well as the other parties who may be involved in the contingency planning -- to be familiar with the steps and procedures, and to know what to do.
"So far, the progress has been good. We noticed that our staff are well-trained to tackle bird flu incursions."
Some 100 people from AVA and the slaughterhouse were involved in Wednesday's exercise. It also included observers from the National Environment Agency and Ministry of Health.
- CNA/ac
- wong chee tat :)
By Leong Wai Kit
POSTED: 17 Jul 2013 3:26 PM
Singapore may be free of bird flu, but it cannot let down its guard against an outbreak here -- that is the message from the Agri-Food & Veterinary Authority (AVA). It held a poultry-culling exercise at a slaughterhouse for the first time, involving 500 chickens.
SINGAPORE: Singapore may be free of bird flu, but it cannot let down its guard against an outbreak here -- that is the message from the Agri-Food & Veterinary Authority (AVA). It held a poultry-culling exercise at a slaughterhouse for the first time, involving 500 chickens.
It takes a few seconds for chickens to be culled via electrocution -- the AVA said the method is humane, and globally approved.
Soonly Food Processing Industries is one of 14 poultry slaughterhouses in Singapore, and every day, the slaughterhouses process about 165,000 chickens and ducks. Workers at the slaughterhouses go through regular training to prepare them for emergencies.
On Wednesday, some workers went through the drills that would kick-in during an outbreak.
First, their health is assessed before they start work -- their temperatures are taken, and staff with fever are not allowed to be in direct contact with chickens. Staff are also given tamiflu to prevent them from developing flu.
They then put on extra protection. On normal days, slaughterhouse workers don masks and gloves at work, but during an emergency, they will wear extra protective gear, including goggles, hair nets and double-layered gloves.
As for the culled birds, the carcasses are packed into biohazard bags and sent for incineration. Vehicles and equipment that have come in contact with the chickens are also decontaminated.
This is AVA's seventh exercise since 2002, and the first that involves a slaughterhouse.
Chew Keng Wah, COO of Soonly Food Processing Industries, said: "Workers also appreciate the value of such an exercise because when we talk to them, different people think of different things. But when you put them through an actual exercise, they know exactly what it is, what the stages are."
AVA said it would continue working with various agencies to improve its contingency plans.
Dr Yap Him Hoo, group director of the quarantine and inspection group at the AVA, said: "The main thing we want to do through this exercise is to train our officers as well as the other parties who may be involved in the contingency planning -- to be familiar with the steps and procedures, and to know what to do.
"So far, the progress has been good. We noticed that our staff are well-trained to tackle bird flu incursions."
Some 100 people from AVA and the slaughterhouse were involved in Wednesday's exercise. It also included observers from the National Environment Agency and Ministry of Health.
- CNA/ac
- wong chee tat :)
China's richest man says wealth gap not a priority
China's richest man says wealth gap not a priority
POSTED: 17 Jul 2013 7:00 PM
China's yawning divide between rich and poor does not need to be tackled, the country's richest person said Wednesday -- as long as everyone can become wealthy.
BEIJING: China's yawning divide between rich and poor does not need to be tackled, the country's richest person said Wednesday -- as long as everyone can become wealthy.
"We don't need to solve the problem of the rich-poor gap, we need to solve the problem of common prosperity," said Zong Qinghou, whose family fortune is estimated at $12.6 billion.
Zong, founder of a huge soft-drinks conglomerate which has branched out into baby milk and children's clothing, said that "rich people should help everyone to become prosperous".
"If everyone is wealthy, society will be harmonious, and more comfortable," the 67-year old entrepreneur told reporters in Beijing at an event to mark the launch of a series of high-end shopping malls.
Zong only went into business in his 40s, selling fizzy drinks to children and reportedly being so short of cash that he slept under a bridge in Beijing because he could not afford a hotel.
But the company he launched, Wahaha, whose name means "Laughing Child" in Chinese, went on to become China's third largest soft drinks company, according to Euromonitor International.
Zong's fortune, as estimated by China-based luxury magazine publisher the Hurun Report, makes him the richest person in China and one of the wealthiest in Asia.
China's rich have become targets for public resentment as the gap between the country's richest and poorest grew following market reforms beginning in the late 1970s.
China's Gini coefficient, a measure of inequality with 0 representing total equality and 1 representing total inequality, stood at 0.47 in 2012, according to government statistics. That would put it close to the US, which had an index figure of 0.56 in 2009, according to the World Bank.
But a study last year by the Survey and Research Center for China Household Finance, a government-backed research group, said the figure was 0.61 in 2010. That would put China at the top of a list of 16 countries issued by the World Bank.
Nonetheless, Zong warned: "If we had egalitarianism... we wouldn't have enough to eat."
He called for lower taxes to stimulate investment. "It's best to encourage people to create wealth," he said.
- AFP/nd
- wong chee tat :)
POSTED: 17 Jul 2013 7:00 PM
China's yawning divide between rich and poor does not need to be tackled, the country's richest person said Wednesday -- as long as everyone can become wealthy.
BEIJING: China's yawning divide between rich and poor does not need to be tackled, the country's richest person said Wednesday -- as long as everyone can become wealthy.
"We don't need to solve the problem of the rich-poor gap, we need to solve the problem of common prosperity," said Zong Qinghou, whose family fortune is estimated at $12.6 billion.
Zong, founder of a huge soft-drinks conglomerate which has branched out into baby milk and children's clothing, said that "rich people should help everyone to become prosperous".
"If everyone is wealthy, society will be harmonious, and more comfortable," the 67-year old entrepreneur told reporters in Beijing at an event to mark the launch of a series of high-end shopping malls.
Zong only went into business in his 40s, selling fizzy drinks to children and reportedly being so short of cash that he slept under a bridge in Beijing because he could not afford a hotel.
But the company he launched, Wahaha, whose name means "Laughing Child" in Chinese, went on to become China's third largest soft drinks company, according to Euromonitor International.
Zong's fortune, as estimated by China-based luxury magazine publisher the Hurun Report, makes him the richest person in China and one of the wealthiest in Asia.
China's rich have become targets for public resentment as the gap between the country's richest and poorest grew following market reforms beginning in the late 1970s.
China's Gini coefficient, a measure of inequality with 0 representing total equality and 1 representing total inequality, stood at 0.47 in 2012, according to government statistics. That would put it close to the US, which had an index figure of 0.56 in 2009, according to the World Bank.
But a study last year by the Survey and Research Center for China Household Finance, a government-backed research group, said the figure was 0.61 in 2010. That would put China at the top of a list of 16 countries issued by the World Bank.
Nonetheless, Zong warned: "If we had egalitarianism... we wouldn't have enough to eat."
He called for lower taxes to stimulate investment. "It's best to encourage people to create wealth," he said.
- AFP/nd
- wong chee tat :)
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