<article>Canadian financial services group <a style="color: #000080;" href="http://dealstreetasia.com/tag/manulife/" target="_blank">Manulife</a> is reviving plans for its initial public offering (IPO) on the <a style="color: #000080;" href="http://dealstreetasia.com/tag/sgx" target="_blank">Singapore Exchange (SGX)</a> of its US office real estate investment trust (REIT).</article>

Canadian financial services group <a style="color: #000080;" href="http://dealstreetasia.com/tag/manulife/" target="_blank">Manulife</a> is reviving plans for its initial public offering (IPO) on the <a style="color: #000080;" href="http://dealstreetasia.com/tag/sgx" target="_blank">Singapore Exchange (SGX)</a> of its US office real estate investment trust (REIT).
Based on a <a style="color: #000080;" href="http://www.financeasia.com/News/407486,manulife-seeks-to-revive-s-reit-ipo.aspx" target="_blank">report</a> in FinanceAsia, Manulife has initiated pre-marketing for the IPO, which failed nine months ago and was abandoned amidst heavy turbulence in public capital markets.
FinanceAsia cited bankers familiar with the development, who claimed that the IPO could raise proceeds estimated at US$500 million. Another source cited shared that cornerstone investors could potentially be expected to take up 40 per cent to 50 per cent of the deal.
The Singapore bourse was selected as a destination for monetising assets via the Manulife US REIT, due to the belief that it would attract stronger attraction as the firstfirst pure-play US office REIT to be listed in Asia. The target date for a listing is 20 may 2016, with the hope of attracting sufficient demand for when it floating the REIT.
The IPO is happening amidst a Chinese market that has <a style="color: #000080;" href="http://www.telegraph.co.uk/business/2016/04/17/china-could-be-stabilising-as-stimulus-efforts-pay-off/" target="_blank">apparently stabilised</a>, at least for now. The attempted listing in July 2015 of the REIT saw Asian public equities market in the early stages of a market correction, particularly for <a style="color: #000080;" href="http://www.forbes.com/sites/greatspeculations/2015/07/15/chinas-violent-stock-market-correction-in-three-easy-charts/#44a4c6bd2d59" target="_blank">China&#8217;s market</a>. At the time, global REIT markets were also weighed down by expectations of an imminent US interest rate hike.
Also Read: <a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/manulife-pre-markets-us-property-assets-in-singapore-ipo-report-7988/">Manulife pre-markets US property assets in Singapore IPO: Report</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/manulife-dbs-in-1-2-billion-insurance-deal-for-asia-4901/">Manulife, DBS in $1.2 billion insurance deal for Asia</a>
Due to these market ecosystem factors, Manulife failed to solicit adequate demand to cover the IPO despite an order book with an estimated 50 per cent just prior to their first attempt at an IPO. However, at of the current time, global public equities markets <a style="color: #000080;" href="http://uk.reuters.com/article/global-markets-idUKL5N17N20Y" target="_blank">have stabilised</a>.
The reported IPO in May 2016 will see a new asset mix for the REIT portfolio. According to FinanceAsia, the last listing attempt saw Manulife US Reit’s include three Grade-A office buildings in Washington DC, Los Angeles, and Irvine, Orange County. The revived deal has seen the Washington DC property replaced with a 28-storey Grade-A office building at 1100 Peachtree Street in Atlanta, Georgia, while the two other assets in Los Angeles remain in the new portfolio.
In terms of value, early indications suggest the new deal is likely to offer an annualised dividend yield of 6.5 per cent to 7.0 per cent for 2017. FinanceAsia suggests that boost in dividend returns is an attempt by Manulife to attract additional interest from private banking &#8211; which accounted for most of the order book in the failed 2015 IPO. All pre-marketing is being conducted in Hong Kong and Singapore.
In the last deal, six cornerstone investors were lined up to take up 23.56 per cent of the Manulife US Reit IPO; DBS itself and as a representative of private banking clients, Fortress Capital, Lucille Holdings, Nikko Asset Management, and Oman Investment Fund. Some have reportedly indicated interest in participating in an IPO, subject to internal approval.
Joint bookrunners for the previous IPO were <a style="color: #000080;" href="http://dealstreetasia.com/tag/DBS" target="_blank">DBS</a> and <a style="color: #000080;" href="http://dealstreetasia.com/tag/jp-morgan" target="_blank">JP Morgan</a>. However, the new bookrunning syndicate for this IPO now consists of <a style="color: #000080;" href="http://www.dealstreetasia.com/tag/cicc/" target="_blank">CICC</a>, <a style="color: #000080;" href="http://www.dealstreetasia.com/tag/credit-suisse/" target="_blank">Credit Suisse</a> and <a style="color: #000080;" href="http://dealstreetasia.com/tag/deutsche-bank" target="_blank">Deutsche Bank</a>.
Also Read:
 <a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/25756-25756/">Manulife reviewing REIT listing on Singapore bourse this year</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/manulife-delays-426m-singapore-ipo-of-us-assets-8792/">Manulife delays $426m Singapore IPO of US assets</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/canadas-manulife-seeks-to-raise-426m-in-singapore-ipo-of-u-s-assets-8485/">Canada’s Manulife seeks to raise $426m in Singapore IPO of US assets</a>

Manulife is exploring the revival of a $500 million REIT IPO on the Singapore bourse in May 2016.

Manulife exploring revival of $500m REIT listing on Singapore bourse

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

Manulife exploring revival of $500m REIT listing on Singapore bourse

Start your deal-making journey now!

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief