Daiwa House Logistics Trust asset, DPL Kawasaki Yako. (Daiwa House Logistics Trust).Daiwa House Logistics Trust asset, DPL Kawasaki Yako. (Daiwa House Logistics Trust).

Daiwa House Logistics Trust (DLHT) has completed its initial public offering (IPO) of 244,438,000 units on the Singapore Exchange (SGX).

The IPO was priced at the offering price of SGD0.80 per unit.

It comprises an international placement of 219,438,000 units to investors outside the US, and a public offer of 25,000,000 units to public investors in Singapore.

Related: Daiwa House Logistics Trust projects yield of 6.5% at IPO price

The placement tranche received indications of interest amounting to a subscription rate of 4.9 times from long-only institutional investors, insurance firms, multi-strategy funds, family offices and high net worth individuals, said the REIT.

Meanwhile, 7,543 valid applications for 236,990,660 units were received for the Singapore public offer, representing a subscription rate of 9.5 times, the REIT added.

49.8% of the total number of units in the IPO were taken up by cornerstone investors that include Bangkok Life Assurance, Credit Suisse AG, and DBS Bank.

“We believe that this is testament to the attractiveness of our portfolio of high-quality modern logistics properties, as well as the strength of our sponsor – Daiwa House Industry Co Ltd, one of the largest construction and real estate development companies in Japan”, said Takeshi Fujita, CEO of the REIT’s manager.

“Our sponsor has announced plans to pursue development opportunities more aggressively in the logistics asset class, with the Southeast Asian region being a key area of focus given the demand for overseas logistics and manufacturing bases, particularly from Japanese-based tenants”, he added.

Daiwa House has also granted the REIT a right of first refusal over a pipeline of assets in Southeast Asia and Japan.

Daiwa House Logistics Trust is an Asia-focused REIT with an initial portfolio comprising 14 logistics properties across Japan with an appraised value of approximately JPY80,570.0 million (SGD952.9 million) and an aggregate net lettable area (NLA) of approximately 423,920 square metres.

The IPO portfolio will be acquired at SGD840.5 million, equivalent to an 11.8% discount to the appraised value.

The portfolio’s occupancy rate was at 96.3% with weighted average lease expiry (WALE) of 7.2 years by NLA.

70.6% of the REIT’s tenant base are, or are related to TSE-listed companies.

The REIT’s sponsor has subscribed for an aggregate of 94,498,000 units, representing 14.0% of the total number of units in issue on the listing date.

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.