Sasseur REIT is the latest REIT to plan its listing in Singapore. The REIT intends to raise S$396 million from its listing through the offering of 266.6 million units at 80 cents each. The offering consists of 252.8 million placement shares and a public tranche of 13.8 million. Unlike some IPOs, which are only accessible to institutional investors, Sasseur REIT’s listing has been offered to retail investors too.
So with that in mind, here are five key things that investors should know about Sasseur REIT’s IPO.
1. Sasseur REIT’s IPO portfolio consists of four outlet malls located in China. They have a total aggregate net lettable area of 304,573.1 square meters and have an appraised value of approximately RMB 7.34 billion or S$1.5 billion. The properties are located in Chong Qing (2 of them), Hefei and Kun Ming and also include 4,466 car park lots. The properties sit on land with land tenures ranging from 30 to 37 years.
2. There were a total of 1,1119 tenants, as of 30 September 2017, and the portfolio had an occupancy rate of 91.8%. The total expected rental income for 2018 is RMB 472.9 million or S$96.7 million. This translates to a 6.45% rental yield on their properties.
3. The weighted average lease expiry (WALE) by net lettable area for the REIT stands at 3.2 years. However, the WALE according to property income stands at 1.2 years.
4. Sasseur REIT has managed to attract 12 cornerstone investors including prominent names such as JD.com, Singapore’s CKK Holdings, and Entrepolis, a private investment firm of Robert Yap.
5. The REIT is sponsored by its namesake Sasseur Cayman Holding, a privately owned outlet mall operator. The sponsor was founded in 1989 and has designed and implemented the development of six outlet malls, consisting of the four properties of the REIT and the other two right of first refusal properties. The sponsor had RMB 2.0 billion in net profit for the year ended 31 December 2016 and shareholder equity of RMB 5.5 billion.
Stay tuned for more on Sasseur REIT!
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of JD.com. Motley Fool Singapore contributor Jeremy Chia doesn’t own shares in any companies mentioned.