13-04-2012, 07:35 AM
IPOs are being rolled out hot and fast! Does this signal where we are now in terms of the bull/bear cycle?
The Straits Times
Apr 13, 2012
Hotel trust slated for S'pore IPO
By Jonathan Kwok
A HOTEL trust with properties in the Asia-Pacific region is planning to list here.
M&L Hospitality Trusts, as the vehicle will be called, will initially hold 2,509 rooms over six hotels.
These will be the Ibis Hotel on Bencoolen Street and Ibis Hotel Novena in Singapore, Four Points by Sheraton and Swissotel Sydney in Sydney, Melbourne's Travelodge Docklands and the Hilton Nagoya in Japan.
A preliminary prospectus lodged with the Monetary Authority of Singapore did not mention the initial public offering price, but a Bloomberg report said the units will be priced between 80 cents and 87 cents each, to raise as much as $463 million.
Bloomberg said trading is slated to start on May 3, and the vehicle is forecast to yield as much as 8.05 per cent this year, and between 7.7 per cent and 8.3 per cent next year.
M&L will be a relatively unique vehicle, known as a stapled group. That is because its hotels will be held under a business trust and a real estate investment trust (Reit).
Investors will hold what is known as 'stapled securities', each consisting of one unit in the Reit and one unit in the business trust. All the six hotels are now held under the Reit, with the business trust being a dormant entity at the point of listing.
The preliminary prospectus did not specify the purpose of having the business trust, but Reits are governed by strict rules that dictate that the vast majority of the properties must be income- producing and cannot be under development.
The laws over business trusts are less strict, and some sponsors have injected assets under development into business trusts before they have been completed. Observers said the business trust in the vehicle would leave this option open for M&L.
M&L will be sponsored by Grand Line International, which is held by the Kum family, one of the pioneers in Singapore's shipping industry.
Businessman Michael Kum from the family will be selling some of the hotels he had earlier bought in this listing.
DBS Bank, JP Morgan and UBS are the joint global coordinators, bookrunners, issue managers and underwriters of the offering.
The Straits Times
Apr 13, 2012
Hotel trust slated for S'pore IPO
By Jonathan Kwok
A HOTEL trust with properties in the Asia-Pacific region is planning to list here.
M&L Hospitality Trusts, as the vehicle will be called, will initially hold 2,509 rooms over six hotels.
These will be the Ibis Hotel on Bencoolen Street and Ibis Hotel Novena in Singapore, Four Points by Sheraton and Swissotel Sydney in Sydney, Melbourne's Travelodge Docklands and the Hilton Nagoya in Japan.
A preliminary prospectus lodged with the Monetary Authority of Singapore did not mention the initial public offering price, but a Bloomberg report said the units will be priced between 80 cents and 87 cents each, to raise as much as $463 million.
Bloomberg said trading is slated to start on May 3, and the vehicle is forecast to yield as much as 8.05 per cent this year, and between 7.7 per cent and 8.3 per cent next year.
M&L will be a relatively unique vehicle, known as a stapled group. That is because its hotels will be held under a business trust and a real estate investment trust (Reit).
Investors will hold what is known as 'stapled securities', each consisting of one unit in the Reit and one unit in the business trust. All the six hotels are now held under the Reit, with the business trust being a dormant entity at the point of listing.
The preliminary prospectus did not specify the purpose of having the business trust, but Reits are governed by strict rules that dictate that the vast majority of the properties must be income- producing and cannot be under development.
The laws over business trusts are less strict, and some sponsors have injected assets under development into business trusts before they have been completed. Observers said the business trust in the vehicle would leave this option open for M&L.
M&L will be sponsored by Grand Line International, which is held by the Kum family, one of the pioneers in Singapore's shipping industry.
Businessman Michael Kum from the family will be selling some of the hotels he had earlier bought in this listing.
DBS Bank, JP Morgan and UBS are the joint global coordinators, bookrunners, issue managers and underwriters of the offering.