Martin Lee @ Sg
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Dynasty REIT IPO Suspended

The IPO listing of Dynasty REIT has been suspended due to worsening market conditions.

Dynasty REIT would have been Singapore’s first RMB dual currency REIT but it looks like ARA will have to wait for another opportunity to attempt for a listing again.

I suspect some potential investors might not have been too comfortable with the artificial “income support” given by the manager in order to boost up the distribution for the first couple of years.

The press release is as follows:

ARA Asset Management Limited would like to announce that since the registration of Dynasty REIT’s prospectus with the Monetary Authority of Singapore, there has been a marked change in investor sentiment given the recent after market performance of several IPOs and a gradual worsening of the overall market conditions. In general, this weakness has been driven by lackluster earnings results by large global corporations in the US and Europe.

ARA maintains its positive outlook on the potential growth of China’s retail and office sectors.

While Dynasty REIT did receive substantial support from institutional and retail investors, including the cornerstones in the transaction, weak global markets continue to impede overall demand, which would likely impair aftermarket performance. After consulting with the underwriting banks, ARA would like to announce that it has suspended Dynasty REIT’s IPO until further notice. ARA may consider a China-focused REIT at a later date, but believes that this decision is in the best interest for all stakeholders at the present time.

ARA will continue to manage these high quality properties in its privately managed funds.

ARA would also like to acknowledge the strong support it received from the MAS, SGX and investors in what would have been the first RMB Dual Currency REIT in Singapore.

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