Perennial Real Estate Holdings *Official* (SGX:40S)

[Garlic & Butter]

07th March update: POSTPONED!

Amount: raising US$860m ($1.118b)
IPO Price: $1.00
IPO Offer Close: 14 March
Listing: 16 March
Properties: 5 (one in operation, another operational in 2Q11)(all in PRC)
Yield: 3%
(FY2011: 90% of income, FY2012: 50% of income)

7 conerstone investors will take up 43% of IPO shares
Managed by former CapitaLand shopping mall chief Pua Seck Guan

Also coming up:
1. Hutchison Whampoa: US$6 billion IPO (already gained in-principle approval from Singapore authorities)

2. Singapore state investor Temasek's Mapletree is planning a US$1 billion-plus property trust IPO whose assets include Vivocity


Full report
Perennial China to raise US$860m in S'pore IPO

SINGAPORE - Perennial China Retail Trust lodged the prospectus for its planned S$1.1 billion (US$861 million) initial public offering in Singapore, in what is likely to be the first of several large asset-backed trust IPOs in the city-state.

Perennial China, managed by former CapitaLand shopping mall chief Pua Seck Guan, is offering 1.1 billion shares at S$1.00 apiece. Seven cornerstone investors, including Cosmo Top and Prudential , will take up 43 per cent of the available shares.

The trust will have stakes in five properties, three of them in the northeastern Chinese city of Shenyang. Only one of the five properties, the Shenyang Red Star Macalline Furniture Mall, is completed, while another mall is scheduled to start operations in the second quarter of this year.

Perennial China offers 'a pure-play exposure in the high retail sales growth in the People's Republic of China,' the trust said in its IPO prospectus.

'The properties have the potential to generate attractive rental and capital growth over time as spending within the malls' shopper catchments increases, driven by ongoing urbanisation of the population and growing disposable income per capita.'

Perennial China's IPO is expected to be the first of several large trust IPOs in Singapore, a popular destination for trusts because of favourable rules such as lower taxes on distribution.

Hong Kong billionaire Li Ka-shing's Hutchison Whampoa is expected to launch a US$6 billion IPO of its port assets packaged as a business trust, while Singapore state investor Temasek's Mapletree is planning a US$1 billion-plus property trust IPO whose assets include Vivocity, Singapore's largest shopping mall.

The Perennial China IPO is scheduled to close on March 14 and the shares are expected to start trading on March 16, the prospectus said.

Its other cornerstone investors are CBRE, Henderson Global, AIA, Singapore fund manager Lion Global and property investor AEW.

Goldman Sachs, Standard Chartered and DBS are the managers of the IPO.

Mr Pua, who is widely credited with building CapitaLand's malls business, resigned from Southeast Asia's biggest developer in September 2008, sparking a 7 percent fall in the firm's share price.

Besides the planned China property trust, Mr Pua's Perennial is currently leading the re-development of three commercial properties in Singapore and it has set up unlisted China funds whose backers include the Beijing Hualian Group. -- REUTERS

Source: business times

 

[battledome64]

Pathetic yield only 3%

 

[blackvice]

plus NAV growth too ... saw it on business times wk end paper

 

[lzydata]

SINGAPORE—Perennial China Retail Trust, a unit of property-investment firm Perennial Real Estate, Saturday said it will defer its proposed 1.1 billion Singapore dollar (US$868 million) initial public offering due to volatile market conditions.

The deferment also comes amid some signs the much larger listing from Li Ka-Shing's Hutchison Port Holdings, also due this month, would eat into demand for the Perennial offering.

Perennial China Retail Trust Will Defer Singapore IPO

Also see Perennial calls off Singapore IPO, Mapletree readies launch

 

[Some_body]

This one I dare not touch especially when it is Chinese properties. And funiture mall remind me of the one near beach road.

 

[addict951]

S K I P
Maintain BUY on Sinkapore centric counters

 

[Garlic & Butter]

its back again

Perennial relaunches S'pore IPO, cuts issue size

SINGAPORE - A China-focused business trust managed by former CapitaLand shopping mall chief Pua Seck Guan is relaunching its Singapore IPO but will scale back the size to S$840 million (US$669 million) from S$1.1 billion.

Perennial China Retail Trust, which owns shopping mall assets in China, joins Mapletree Commercial Trust in relaunching initial public offerings in Singapore after postponing them last month due to volatile equity markets, indicating that investor confidence may be returning.

Mapletree Commercial Trust, managed by Singapore state investor Temasek's property arm, is set to raise as much as S$924 million from its offering.

Perennial China is offering 1.1 billion units, according to an email seen by Reuters on Thursday. The revised offering is below the S$1.1 billion that Perennial wanted to raise previously.

Roadshow and bookbuilding for Perennial China's IPO will begin on April 26 and the trust is expected to debut on the Singapore exchange on May 12, according to a term sheet seen by Reuters.

In its earlier prospectus lodged with MAS, Perennial China said it will have stakes in five properties, three of them in the northeastern Chinese city of Shenyang.

Only one of the five properties, the Shenyang Red Star Macalline Furniture Mall, is completed, while another mall is scheduled to start operations in the second quarter of this year.

Perennial China offers 'a pure-play exposure in the high retail sales growth in the People's Republic of China,' the trust said in its earlier prospectus.

The IPO is being managed by Citigroup, DBS, Goldman Sachs and Standard Chartered, according to the e-mail. -- REUTERS

 

[Pocoyoz]

SINGAPORE—Perennial China Retail Trust Thursday revived its stalled initial public offering in Singapore, an indication that global equities markets are emerging from the trough of recent months.

The company, which plans to launch an IPO through a business trust and raise as much as 843 million Singapore dollars (US$681 million), resubmitted its prospectus to the Monetary Authority of Singapore Thursday. Perennial had withdrawn it in March, citing volatile market conditions.

In the revised prospectus, Perennial said it will offer up to 1.12 billion units and gave a price range of S$0.70 to S$0.76 per unit.

The 1.12 billion offer includes up to 577 million units to institutional investors and the public and up to 516.7 million units to cornerstone investors.

Before withdrawing its prospectus in March, the company had been expected to raise around S$1.1 billion, and had set an offer price of S$1 per unit.

Pua Seck Guan, the former chief executive of CapitaMall Trust, is the founder of Perennial Real Estate, which is involved in real estate and real estate-related activities including fund management, asset management and retail management.

The revised prospectus said the listing is planned for June 8.

Cornerstone investors, which have committed to take up to 516.7 million units, include AEW, which manages property in North America, Europe and Asia; Asdew Acquisitions Pte. Ltd., a Singapore-based investment company; CBRE GRES, which manages more than US$2.5 billion of global property securities on behalf of institutional investors around the world; and independent global asset-management firm Henderson.

For Singapore, business trusts offer a tool for weakening the regional dominance of the Hong Kong market, which limits listings of trusts other than real-estate investment trusts. Perennial's IPO would be Singapore's second listing via a business trust this year. In March Hutchison Port Holdings Trust raised US$5.5 billion, the city-state's largest-ever IPO.

A business trust uses most of a company's cash flow to pay dividends, making the stock more attractive to long-term investors seeking steady income.

Perennial China Retail Trust said the initial propertyportfolio of the business trust will include some of its malls in China. The trust will offer "pure-play" exposure to the growth in retail rents and capital values in China, which is being driven by urbanization of the population baseand growth in disposable incomes, Perennial said.

The company said the proceeds would be go to finance the acquisition of shopping malls in China and for general corporate working purposes.

People familiar with the situation said last week that another Singapore-based company, CPG Capital Partners Ltd., is looking to raise as much as US$600 million through a trust offering in Singapore by the fourth quarter of this year.

Investment bankers have said fund-raising activity via IPOs is gaining momentum in Singapore, with companies from Indonesia, Vietnam and Europe looking to list in the city-state. U.K.-based Fitness First is planning to raise up to S$700 million through an IPO planned for the third quarter, people familiar with the situation said in April.

Citigroup, DBS, Goldman Sachs and Standard Chartered Bank are the banks involved in the Perennial IPO.

 

[Garlic & Butter]

selling at about 45% below NAV
i think its NAv was $1.1x?

 

[AprilRyan]

This fugging ipo will be my last!!!! Hope 3rd time lucky!!!!

 

[Pocoyoz]

The NAV per unit based on the Unaudited Pro Forma Consolidated Balance Sheet as at the Listing Date is S$0.67.

The Trustee-Manager has performed a calculation of the adjusted pro forma NAV per Unit (after excluding deferred tax) assuming that:
• PCRT is able to successfully acquire legal title to both Chengdu Qingyang Guanghua Shopping Mall and Foshan Yicui Shijia Shopping Mall, and that their valuation upon completion will remain unchanged from the valuation by the Independent Valuer as at 31 December 2010 (on an “as if complete and fully leased” basis for both assets as of that date); and
• the Shenyang Longemont Offices are successfully completed and fully leased and PCRT’s 50.0% equity interest in Shenyang Summit is valued at NAV based on the valuation by the Independent Valuer as at 31 December 2010.

On the above basis, the Trustee-Manager believes from its calculations that the adjusted pro forma NAV per Unit based on the Minimum Offering Price will increase to S$0.82 (excluding deferred tax) (from S$0.67 as at the Listing Date).

 

[The_Davis]

Is this considered as S-Chip?

 

[Portman]

avoid ..............................................................................

 

[Darkzi0n]

Is this considered as S-Chip?

sld be.. since it has its business operations in mainland china.

Do note that this is not a REITs but a business trust.. n with much of its portfolio still under development, i think it add quite abit of risk to the trust, especially since mainland china are bugged with disputes regarding land rights and usage..

 

[kokchu]

Once bitten, twice shy (HPH).

 

[The_Davis]

yeah don't really like business trust

 

[Mecisteus]

This fugging ipo will be my last!!!! Hope 3rd time lucky!!!!

Good luck

 

[mollys]

Another China stock. Trade with care.

 

[Garlic & Butter]

opening price above 65cts can 偷笑 liao

 

[Pocoyoz]

will postpone again anot?