Dynasty REIT will be launching their IPO in Singapore. The offer period starts at 9am today until 24 October 2012 at 12pm.
The Dynasty REIT IPO will be Singapore’s first RMB-denominated one, and will have both SGD and RMB quotes after listing. This will allow investors to buy the REIT using either Singapore dollar or yuan. The units will be fully fungible.
For now, dividends will be given in SGD but in time to come, investors will be able to choose which currency to receive the dividends.
The principal investment strategy of Dynasty REIT is to own income-producing commercial real estate in China, as well as real estate-related assets.
Dynasty, managed by a unit of property fund manager ARA Asset Management, is offering 893.9 million and 901.3 million units to investors at RMB 4.40 (S$0.855) to RMB 4.70 (S$0.915) a unit.This translates to a forecast yield of 6.8%-7.1% for 2012 and 7.0%-7.3% for 2013 (depending on final offer price).
The trust has an approximate NAV per unit of RMB 4.79 or S$0.936.
You can download the Dynasty prospectus here:
Dynasty REIT Prospectus (7.3 Mb)