Thursday, 11 October 2012

Dynasty REIT (Preview)



Issuer: Dynasty REIT - first RMB denominated REIT on SGX
Sponsor: ARA Asset Management Ltd
Issue size: 893,872,000 to 901,292,000 shares
Distribution Yield 2013E :7.0% to 7.2%

Price range (based on RMB5.115 = SGD1.00) : RMB4.40 (SGD0.86) - RMB4.70 (SGD0.92)

Expected Allocation: 24 Oct
Expected Listing Date : 30 Oct


Preliminary prospectus is here.

I received the above from my broker today. It always gives me "bad feeling" when Li Ka-Shing wants to cash out of the market. You can see that he always cash out at the market top. You can see it in Suntec, you can see it in Hutchison Port and you can see it in Hui Xian REIT. Sounds similar to the Ding Xie effect which i was talking about? hahaha

Dynasty REIT is established with the investment strategy of investing in income producing assets in PRC that is used for commercial purposes. The initial portfolio is Nanjing IFC, Dalian TRC and Shanghai ICP.

I don't wish to comment further until i see the final prospectus and the implied yield. At the end of the day, it is a play on the outlook of the economy of China and whether the offices can be fully leased out to generate the passive income to you.

The 3 buildings are:








Track Record of Superman LKS in a similar REIT




Hui Xian REIT was launched at RMB 5.24 in 2011. It is currently languishing at RMB 4.02. The information is here. Share price chart attached below for your information.



Mr. Li is a genius and i am indeed "wary" whenever he comes to the IPO market. hahaha.

Happy IPOing.

7 comments:

James said...

Lol same thoughts about LKS cashing out. I'll rather go for Gaylin

Mr. IPO said...

Haha yep! Hope courts and gaylin do well and that geo , religare and dynasty don't kill off the IPO market. :-S

Dimpy said...

Technical indicators MACD and RSI giving weak signal for STI today 12-Oct. STI having Resistance @ 3050 and above this level it may take resistance from 3085-3115 levels.

ref: SGX Singapore

la papillion said...
This comment has been removed by the author.
la papillion said...

The reit might not do well. But which company do you think will benefit from managing this reit? :)

(haha, sorry, forgot to subscribe to email if there's a reply...)

Mr. IPO said...

Haha i had the same thoughts as you! :)

Anonymous said...

LKS only retain a max 10.1% of the reit after listing, not unlike HPH...

Better stay clear from this IPO

Issuer: Dynasty Real Estate Investment Trust

Ticker: TBC – Units will trade under 2 different tickers, one each for SGD and RMB

Currency of Issue:
Dual currency – S$ and RMB


Sponsor: ARA Asset Management Limited

IPO Listing: Singapore Stock Exchange Mainboard

Total Units Outstanding: 1,147,730,000 Units

Issue Size (incl. cornerstone): Up to 1,038,900,000 Units, representing up to c.S$955m / US$775m / RMB4,883

Free Float %: Up to 90.5%

Sponsor Stake Post-IPO: Up to 10.1%

Offer Structure: Institutional and Public Tranche – Up to 901,292,000 Units or up to c.86.8% of the offer representing up to c.S$829m/RMB4,236m

Cornerstone Tranche – 137,608,000 Units or up to c.13.3% of the offer representing up to c.S$126m / RMB647m

Cornerstone Investors: Amundi (32.6m units – up to S$30m);

Credit Suisse AG (105.0m units – up to S$97m)

Offering Price: S$[0.86] – S$[0.92] per Unit / RMB4.4 – RMB4.7 per Unit

Implied Yield Dec 2012E: 6.8% – 7.1% (Annualized)

Implied Yield Dec 2013E: 7.0% – 7.3%

Lock-Up: Sponsor stake – 100% for 180 days, 50% for additional 180 days



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