Initial Public Offering (Offer closes at 5 PM today 6 June 2008)

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.

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

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

Indiabulls Property Trust (IPIT) all set to list in Singapore

Real Estate trusts listed in Singapore have seen unfavorable markets during the past few months, following significant falls in share prices and hence companies opting for Initial Public Offers have rightly stayed away from the declining market. Surprisingly enough, Indiabulls Properties Investment Trust (IPIT) looks like it is set to launch an offering of about S$260 million ($190 million) within the next couple of weeks, following the start of pre-marketing at the end of last week, which means a saving grace for IPOs looking at the Singapore market in the near future.The listing vehicle for this IPO is sponsored Indiabulls Real Estate (IBRE), which is by India’s third largest property developer in terms of market capitalization, will be structured largely as a real estate investment trust (REIT) but will be listed as a business trust to give it greater flexibility with regard to how much of its portfolio can be made up of properties still under development. The initial portfolio will consist of two commercial property developments in the up-and-coming business & commercial district of Lower Parel in Mumbai, which was a former industrial region that used to house numerous textile mills like Pheonix Mills & Jupiter Mills, but is now a micro-market with high-end commercial and residential developments. All Residential as well as Commercial developments in the Lower Parel area, are premium because of lack of availability of good commercial space in Mumbai, high rental values and quality tenants, including banks, financial institutions and large corporations.


Indiabulls Properties Investment Trust (IPIT)’s developments – One Indiabulls Centre (which was formerly known as Jupiter Mills) and Elphinstone Mills are located within two IT parks in the area. When finished, the two combined will have 2.97 million square foot of lettable office space, 438,000 sq ft of retail space and 119,000 sq ft of residential housing. If successfully listed, IPIT will become only the second property trust in Singapore to be backed by Indian assets after Ascendas India Trust (a-iTrust) that listed in July last year, beating DLF and Unitech to the punch. DLF, Unitech and Indiabulls were all considering spinning off part of their property assets through the REIT route or business trust in Singapore around Feb this year, but the plans were postponed as the selling pressure on global equities intensified. At the time, DLF and Unitech were both aiming for significantly larger IPOs at up to $1.5 billion and $700 million, respectively.

It is a logical decision for IndiaBulls Real Estate to vouch for the early mover advantage in being the first to take on the still challenging market. Considering that a-iTrust is still down 30% from its highs from November, this move could prove to be both risky & smart, since the Singapore market is showing signs of recovering.

It is also said that Billionaire Lakshmi Mittal, the world's richest Indian, has committed to buy units equivalent to a 3.9 per cent stake in IPIT, which is in process of listing in Singapore.



Contributed By : Shivang Prabhakar