10 Stanton Road in Sydney, a property in the initial portfolio of Frasers Logistics & Industrial Trust (Photo: Frasers Logistics & Industrial Trust)

Frasers Logistics & Industrial Trust, which will debut on the Singapore Exchange on 21 June as the country’s latest industrial REIT, has reported strong demand from both institutional and retail investors for its initial public offering (IPO) of 521,749,000 units.

Based on the 80 million units made available in the public tranche, the offer was 3.9 times subscribed. Meanwhile the placement trance saw indications of interest amounting to over SGD2.5 billion, representing over six times the units available.

As a result, the IPO has been six times subscribed overall having received total subscription valued at approximately SGD2.8 billion, said the REIT’s manager in a statement on 17 June.

“The strong demand from both institutional and retail investors to our IPO is indeed heartening and a strong reflection of the confidence in Frasers Logistics & Industrial Trust’s unique investment proposition as Singapore’s first initial pure-play Australian industrial REIT”, said Robert Wallace, CEO of the REIT’s manager.

Frasers Logistics & Industrial Trust was priced at SGD0.89, representing the top end of a range first indicated in its initial prospectus from early June 2016.

The REIT has forecast a distribution per unit (DPU) of 7.02 Singapore cents for the period spanning 1 October 2016 to 30 September 2017, representing a yield of 7.02% for the year.

Units of Frasers Logistics & Industrial Trust will begin trading on the Singapore Exchange at 9 a.m. on 21 June.

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.