Newspaper publisher Singapore Press Holdings (SPH) has launched an initial public offering of units in SPH REIT following the registration of its prospectus with the Monetary Authority of Singapore. The IPO will offer 308,884,000 units priced at the top end of the range at S$0.90 per unit, raising some S$504 million for the company.

The IPO is priced at the top end of the indicative price range of S$0.85 - S$0.90, underscoring strong demand from institutional investors.  

At the offering price of S$0.90 investors can expect a distribution yield of 5.79 percent for the projection year FY2014.

Upon listing, SPH REIT will be one of the largest retail REITs in Singapore by asset value. The initial portfolio of properties comprises a 99-year leasehold interest in Paragon commencing on the date of listing of SPH REIT and a 99-year leasehold interest in
The Clementi Mall commencing on 31 August 2010. Valued at S$3.1 billion with an aggregate net lettable area of 898,779 square feet, the properties have a committed occupancy of 100 percent and a tenant base of 431 local and international retailers and medical specialists.

The IPO will open at 1800 on 17 July 2013 and will close at 1200 on 22 July 2013. Listing and trading of SPH REIT’s units on the Singapore Exchange is expected to commence at 1400 on 24 July 2013.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.