MARKETS & INVESTING | Staff Reporter, Singapore

Dynasty REIT to raise S$1 billion in record-making IPO

It will be Singapore's largest IPO for 2012.

Dynasty REIT also holds the distinction of being Singapore’s first RMB-denominated real estate investment trust with dual currency listing, according to the company.

The trust has registered its prospectus with the Monetary Authority of Singapore for a listing on the Main Board of Singapore Exchange Securities Trading Limited, following a week of successful international road shows in Singapore, Hong Kong and London where it received strong support, it added.

The IPO is estimated to raise between RMB5.1 billion (S$981.3 million) and RMB5.4 billion (S$1.0 billion), and will be ARA's first, directly sponsored publicly-listed REIT with S$100 million committed for a sponsor stake of approximately 10%. Amundi and Credit Suisse are set to subscribe for an aggregate 12% stake as cornerstone investors.

“We are truly excited to bring Dynasty REIT to the market as it is ARA’s first, directly sponsored public trust. As a reflection of our long-term commitment to Dynasty REIT, ARA is injecting an additional new capital of S$100 million via a sponsor stake of approximately 10% to co-invest with IPO investors in our flagship trust," said Mr. John Lim, the Group Chief Executive officer of ARA and Non-Executive Director of the Manager.

“China continues to be one of the fastest growing economies in the world with an expected growth rate of 7.5% in 2012. Underpinned by strong urbanisation, a growing middle class with high disposable income, and the positive impact of the US Fed’s QE3 policies, the outlook for the real estate sector in China, especially quality urban properties, looks attractive," said Mr Mark Chu, the Chief Executive Officer of the Manager.

“Dynasty REIT presents investors with an attractive value proposition as its assets are operating at various stages of the leasing cycle and asset enhancements. Nanjing IFC and Shanghai ICP are in their first lease cycle and Dalian TRC has just completed a major revamp in 2010, providing a platform for strong organic growth opportunities from rental reversions,” Mr Chu added.

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