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Far East REIT Starts Marketing of S$700-million IPO: Report


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By Donavan Lim

Far East REIT, owner of hotels and serviced residences in Singapore, had started pre-marketing on Friday of an initial public offering (IPO) of up to S$700 million, reported Reuters.

The real estate investment trust is said to comprise of seven hotels and four serviced residences in Singapore with about 2,500 rooms, disclosed a source to the newswire agency.

Set to debut on the Singapore stock exchange on August 27, the launch of the IPO will come hot on the heels of Ascendas Hospitality Trust’s which was relaunched this week after the company was forced to remove one of the hotels from its portfolio.

The issuance of the new IPO will be a welcome for Singapore Exchange (SGX), which had seen only seven IPOs in the first half of the year.

Earlier, SGX had announced plans to tighten admission listing in an attempt to attract a greater number of IPOs and transform the stock market.

The REIT, which is being marketed at a yield of 6 per cent to 6.5 per cent, will have half of the offering covered by cornerstone investors, the source stated.

DBS Group, Goldman Sachs and HSBC were hired as joint global coordinators and joint bookrunners on the deal.