Ascendas Hospitality Trust to launch S’pore IPO worth at least US$770m

Singapore is set to see the launch of its largest initial public offering (IPO) for the year, with Ascendas Hospitality Trust lodging its preliminary prospectus with the Monetary Authority of Singapore (MAS) to list on the SGX Mainboard.

The trust, which comprises a real estate investment trust and a business trust, plans to sell between 506 million and 530 million stapled securities in its IPO to raise between S$770 million about S$823 million. The trust seeks to price the IPO at between S$0.88 and S$0.94.

According to the preliminary prospectus, it has secured three cornerstone investors, one of which is hospitality chain Accor Asia Pacific.

Based on the minimum offering price, Accor has agreed to take up S$50 million worth of stapled securities.

The other two investors are Splendid Asia Macro Fund and Lianhe Investments Pte Ltd.

Ascendas Hospitality Trust has been forecast to yield between 7.4 per cent to 7.8 per cent in 2013 and 7.7 per cent to 8.0 per cent in 2014.

The trust will have an initial portfolio of 11 hotels located in major cities in Australia, China, Japan and South Korea.

Singapore business space developer Ascendas Group is the sponsor for the IPO.

Source : Channel NewsAsia – 9 Jul 2012