Initial Public Offering (Offer closes at 5 PM today 6 June 2008) - Indiabulls Properties Investment Trust - only the second Singapore property trust to offer exposure to India
Indiabulls Real Estate, part of diversified Indiabulls group with interests in financial services, power, retail and realty businesses, last week filed a prospectus with Monetary Authority of Singapore for an initial public offer of IPIT, estimated to raise about $300 million.
IPIT is a business trust registered under the laws of Singapore and is making an offer of its units to public and institutional investors and the IPO is expected to be priced towards the end of the month.
Indiabulls Real Estate, part of diversified Indiabulls group with interests in financial services, power, retail and realty businesses, last week filed a prospectus with Monetary Authority of Singapore for an initial public offer of IPIT, estimated to raise about $300 million.
IPIT is a business trust registered under the laws of Singapore and is making an offer of its units to public and institutional investors and the IPO is expected to be priced towards the end of the month.
An investment arm of NRI billionaire Lakshmi Mittal family has already agreed to purchase 91 million shares in the trust at the IPO price, amounting to a 3.9 per cent stake
Key features:
· 262.5 million common units (subject to over allotment option)
· Sing$1.00 to Sing$1.10
· Offering is for 353.5 million shares
· Lead Managers Deutsche Bank and Merrill Lynch
· DPU of 5.12 cents per unit in forecast year 2009 and 9.82 cents per unit in the projection year 2010. This will signify increase of 92% in the dividend yield.
· Applicants may use cash only
· Applications can be made through DBS Bank (including POSB), OCBC or UOB Group
Key features:
· 262.5 million common units (subject to over allotment option)
· Sing$1.00 to Sing$1.10
· Offering is for 353.5 million shares
· Lead Managers Deutsche Bank and Merrill Lynch
· DPU of 5.12 cents per unit in forecast year 2009 and 9.82 cents per unit in the projection year 2010. This will signify increase of 92% in the dividend yield.
· Applicants may use cash only
· Applications can be made through DBS Bank (including POSB), OCBC or UOB Group
ATMs, internet banking websites of DBS Bank and UOB Bank or on printed application forms which form part of the Prospectus.
A copy of the prospectus is available on the SGX-ST website: http://www.sgx.com
IBREL is offering to sell about 353.5 million shares of IPIT in a price band of 1.0-1.1 Singapore dollar each, and in the projected price range, the IPO could mop up SGD 353-389 million (USD 259-286 million) for the company.
As per the time table for the IPO filed with the Singapore Stock Exchange that the price would be fixed today end after the offer closes at 5 PM and shares would commence trading on June 11
Key Investment Highlights
1. Premier office space trust offering exposure to the booming Indian economy and to the rapidly growing services sectors
2. Unique opportunity to invest in strategic Mumbai market, India’s premier commercial centre
3. Exposure to prime initial portfolio built and managed to international standards which will attract a quality tenant base
4. Strong growth model combining high organic growth potential and the Trustee-Manager’s three pronged acquisition strategy
5. Strong sponsorship and commitment from Indiabulls
6. Sponsor’s alignment of interest with that of Unitholders
7. Stable and growing distributions
Conclusion: This is the second Singapore property trust to offer exposure to India. The return on the investment ie Dividend yield of 9.82 % in 2010 and increasing thereafter is excellent. There is strong sponsorship and commitment from Indiabulls group which is the fourth largest real estate group in India by market capitalization.
The ROFR on the other properties of Indiabulls will provide an excellent return to the investors. So don’t miss this opportunity as today is the last day and the offer closes at 5 PM. Incase you need any further details, you can contact us at media@propertymixer.com
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