Manulife U.S. REIT Opens Lower in Singapore Trading Debut

by Jonathan Adams

Backed by Canada’s largest life insurer, Manulife U.S. Real Estate Investment Trust opened lower on its first day of trading in Singapore.

The units opened at 82 cents apiece at 2 p.m. local time, 1.2 per cent below the offering price of 83 cents, and slid to 79.5 cents at 2:10 p.m. Singapore time. The trust, backed by three office buildings in Los Angeles and Atlanta, will offer a dividend yield of as much as 6.7 per cent for this year and 7.2 per cent for 2017, according to the company prospectus.

Toronto-based Manulife Financial Corp. raised $519.2 million (£356.29 million) in its second attempt at a Singapore initial public offering of its U.S. properties, including placements to sponsors and cornerstone investors. The REIT delayed its IPO in July last year, citing volatile market conditions. It had earlier offered an estimated 6.3 per cent dividend yield for 2016.

The offering is Singapore’s first initial share sale above $100 million (£68.62 million) since BHG Retail REIT raised $194 million (£133.13 million) in November. The listing gives a boost to the city-state’s exchange, which had the smallest haul of IPOs among the region’s four largest stock markets in 2015.

Manulife U.S. REIT’s cornerstone investors include private banking clients of Credit Suisse Group AG and DBS Group Holdings Ltd., the prospectus showed. DBS Bank Ltd., Malaysia’s Fortress Capital Asset Management, Oman Investment Fund and Lucille Holdings Pte are also cornerstone investors in the offering.

DBS, China International Capital Corp., Credit Suisse and Deutsche Bank AG arranged the sale, according to the filing.

This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Related News

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Know more