- Frasers Logistics and Industrial Trust (FLT) is set to raise about $903 million after pricing its IPO at the top of its indicative range at 89 cents.
- This is Singapore’s biggest new listing in three years.
- About 521.7 million units will be sold to institutions and retail investors. Another 492.8 million units is set aside for cornerstone investors.
- The portfolio at IPO comprises 51 logistic and industrial properties with gross lettable area 1.2 million sqm of properties in three cities: Melbourne (40%), Sydney (28%) and Brisbane (28%). Land tenure is freehold for 60% of the portfolio, with the rest are on long leases of 80 years. Occupancy is 98%.
- The IPO portfolio is valued at $1.6 billion.
- At IPO, the yield will be 6.83% or a DPU of 2.03 cents for three and a half months. That’s because FLT has a September year end. The forecast yield for FY2017 is 7.02%.
- But if the call option for the acquisition of three properties are exercised on Oct 1, the forecast yield for FY2017 will rise to 7.3% or DPU of 6.5 cents.
- Units of the REIT will be traded in Singapore dollars. Distributions will be paid in Singapore dollars with an option to receive in Australian dollars.
- Gearing at IPO is 25% including the development properties but could rise to 31% next year if the call option properties were acquired.
- The IPO closes at 12 pm, June 16. Trading will start on June 21 on the SGX.
This article first appeared in The Edge Singapore Market Report.