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BHG Retail REIT completes IPO on SGX

Xinhua, December 9, 2015 Adjust font size:

BHG Retail Trust Management Pte. Ltd., the first pure-play China retail real estate investment trust (REIT) sponsored by a China-based group, announced Wednesday it has successfully completed its initial public offering on the Main Board of Singapore Exchange Securities Trading Limited (SGX-ST).

It is also the first mainboard and REIT listing in Singapore this year.

According to the company's statement, the offering comprised an international placement to investors at an offering price of 0.80 Singapore dollars (0.57 U.S. dollars) per unit, including institutional and other investors in Singapore of 143,169,000 units, and an offering to the public in Singapore of 8,000,000 units.

As at the close of the offering at 12 noon on Monday, all the units were fully subscribed, BHG said.

Separately, BHG Retail REIT secured approximately 134.9 million Singapore dollars (96.4 million U.S. dollars) from its four cornerstone investors, comprising China Life Insurance Company Ltd., China Hi-Tech Holding Company Ltd., China Merchants Bank Asset Management, and Dr. Chanchai Ruayrungruang. Collectively.

These cornerstone investors have subscribed for an aggregate of 168,609,400 units at the offering price, representing a collective shareholding of approximately 34.2 percent of the total number of units in the offering.

"The support from the international investing community and local investors in Singapore for our IPO is heartening. This reflects the confidence in BHG Retail REIT's investment proposition, backed by the strong potential for retail properties in China and the Sponsor's capabilities and expertise in retail property management," said Chan Iz-Lynn, chief executive officer of the manager.

"BHG Retail REIT is also poised to benefit from strong acquisition growth in China, with the potential to more than triple the IPO portfolio size by gross floor area with a pipeline of 12 properties under the Sponsor's voluntary right of first refusal."

In total, BHG Retail REIT has raised 394.2 million Singapore dollars (281.6 million U.S. dollars).

Trading of the units on the Main Board of the SGX-ST is expected to commence at 2.00 p.m. on Friday. Endit