Soilbuild REIT IPO subscribed 5.4 times, raised $928.8m in proceeds

See what the proceeds will fund.

SB REIT Management Pte. Ltd., the manager of Soilbuild Business Space REIT (Soilbuild REIT), today announced that its Initial Public Offering (IPO) has attracted strong interest from both institutional and retail investors for the 586,532,000 Units offered at $0.78 per Unit.

At the close of the public offer at 12.00 noon on 14 August 2013, there were 10,093 valid applications for 337,009,000 Units. Based on the 62,500,000 Units available to the public for subscription, the public offer was approximately 5.4 times subscribed.

DBS Bank Ltd., on behalf of the joint global coordinators for the offering, has overallotted an additional 56,307,000 Units to the Placement Tranche, to meet the strong demand from the institutional investors during the book building period.

Trading of the Units is expected to commence on a “ready” basis on the Main Board of the Singapore Exchange Securities Trading Limited at 2.00 p.m. on 16 August 2013.

Mr Shane Hagan, Chief Executive Officer of SB REIT Management Pte. Ltd., said: “We are delighted with the strong response from both the Singapore public as well as institutional investors particularly global long only and specialist real estate funds. We look forward to welcoming them as our unitholders.“The strong support shown confirms Soilbuild REIT’s attractiveness to investors in terms of its quality portfolio and unique competitive strengths.”

Of the estimated proceeds of $928.8 million, $820.5 million will go towards paying for Solaris, Eightrium @ Changi Business Park, Tuas Connection and West Park BizCentral, $84.8 million for the repayment of existing private trust debt in relation to the three thirdparty acquisitions already held by Soilbuild REIT, and the balance for the payment of IPOrelated costs and working capital. The proceeds of $928.8 million came from the IPO, the Units subscribed by Mr Lim Chap Huat as well as from the senior term loan facility.Soilbuild REIT unitholders can expect to receive an annualised distribution yield of 7.5% for Forecast Period 2013, rising to 7.7% for Projection Year 2014.

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