Singapore: HNA Commercial REIT targets $561m fundraise via IPO

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HNA Commercial REIT is expected to have an estimated issue size of S$775 million ($561.2 million) in its upcoming initial public offering (IPO) on the Singapore bourse. This is expected to be the largest IPO on the Singapore bourse this year.

According to media reports, indicative market capitalisation is estimated in the range of S$780 million to S$800 million. The total offering size was initially estimated from S$430 million to S$450 million. Sponsors of the REIT will grant it the right of first refusal to two properties in UK.

Shenzhen-listed HNA Investment Group is expected to emerge as the largest shareholder, with an equity interest of at least 35 per cent and a 75 per cent stake in the REIT manager, HNA-A EP REIT Management. The REIT manager was established in partnership with Singapore-based property fund management firm AEP Investment Management.

HNA Group is the parent of HNA Holding Group Co, which is currently discussing the acquisition of a controlling stake in CWT from C&P Holdings.

The investment mandate for the real estate investment trust (REIT) is to invest in commercial and business parks in Australia, Singapore and the UK, with a gearing expected to be 28.6 per cent. This gives it the potential to acquire more properties.

According to The Edge Singapore, which cites documents it reviewed, the IPO portfolio will comprise five properties, covering 46 per cent of the portfolio in Australia, 27 per cent in the UK, and 26 per cent in Singapore.

Two of the properties are StarHub Green in Ubi and 41 George Street in Brisbane. The Singapore property has a 94.7 per cent occupancy while the Brisbane property has occupancy of 99.8 per cent. Both assets are from the Basil Property Trust, which is managed by AEP.

Another property in the portfolio is an asset in the UK, Trident Place Business Park, Hatfield, which is 100 per cent occupied. This is from AEP’s UK Separate Account Fund.

The two remaining properties are office buildings in Sydney and Adelaide. Two of these IPO assets hold AEI (asset enhancement initiative) potential.

Also Read:

China: HNA Group acquires 16.8% in Swiss duty-free operator Dufry in $1.44b deal

China’s HNA Group betting big on financial services

HNA group unit outbids others to acquire former HK airport site for $1.1b

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.