Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (Reit) launched its initial public offering yesterday.
Sabana Reit will be Singapore’s first Reit that conforms to Islamic finance principles. The 15 industrial properties that it holds will be managed in line with Islamic principles.
Out of the 508 million units available in its initial public offering (IPO), about 432.5 million units will be for large institutional investors while the balance 75.5 million will be for retail investors.
The units will be priced at $1.05 per unit.
Based on the expected distribution of 8.63 cents per unit for next year, the units will give a yield of 8.22 per cent. The yield for 2012 is expected to be 8.25 per cent or 8.67 cents per unit.
The offering closes at 6pm on Wednesday with trading expected to start at 2pm on Friday.
The Sabana Reit IPO prospectus can be downloaded here: