JobsceElite Commercial REIT's Jobscentre Plus at High Road, Ilford. (Image: Elite Commercial REIT)ntre Plus at High Road, Ilford

Elite Commercial REIT has completed an initial public offering (IPO) of 114,686,200 units at GBP0.68 (SGD1.21) each.

The international placement of 108,951,900 units to non-US international investors received indications of interest amounting to over GBP234.3 million.

This represents a subscription rate of 3.2 times.

Meanwhile 3,058 valid applications for 47,850,000 units amounting to approximately GBP32.5 million were received for the 5,734,300 units on offer to the public in Singapore.

This represents a subscription rate of 8.3 times.

Overall, the placement and public tranches received total subscription valued at about GBP266.8 million.

As such, the exercise is approximately 3.4 times subscribed.

Concurrently UBS AG, Singapore Branch and UBS AG, Hong Kong Branch, Bank of Singapore Limited, and CIMB Bank Berhad, Singapore Branch have entered into separate subscription agreements as cornerstone investors.

Based on the IPO price, gross proceeds of approximately GBP130.9 million are expected to be raised from the offering and cornerstone units.

Distributions in Elite Commercial REIT will be declared in GBP.

Unitholders will receive distributions in Singapore dollars equivalent of the GBP distribution declared.

Unitholders may also elect to receive the entire distribution in GBP.

Elite Commercial REIT is expected to begin trading on the Singapore Exchange at 2pm on 6 February.

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.