Keppel-KBS US Reit registers IPO prospectus
THU, NOV 02, 2017 - 5:59 PM
LYNETTE KHOOlynkhoo@sph.com.sg@LynetteKhooBT
KEPPEL-KBS US Reit has registered its prospectus for its initial public offering (IPO) with the Monetary Authority of Singapore, which will raise gross proceeds of US$553.1 million.
It is offering 262.77 million shares at 88 US cents apiece.
The offering consists of an international placement of 228.68 million units to investors outside the US ,and an offering of 34.09 million units to the Singapore public.
Separately, the cornerstone investors have agreed to subscribe for 246.37 million units, while the joint sponsors - who own the real estate investment trust (Reit) manager - are subscribing for some 119.43 million units at the offer price.
Backed by Keppel Capital and KBS Pacific Advisors as joint sponsors, Keppel-KBS US Reit's initial portfolio comprises 11 freehold office properties valued at US$829.4 million in seven growth cities in the US.
SEE ALSO: Keppel-KBS US Reit to raise gross proceeds of US$553m
"Keppel-KBS US Reit offers unitholders a strong and unique value proposition of attractive distributions with strong visible organic growth," said David Snyder, CEO and chief investment officer of the Reit manager.
"Driving this positive momentum is the favourable outlook in the office real estate sector, especially in key markets where the properties comprising Keppel-KBS US Reit's IPO portfolio are located. These are markets where economic, population and employment growth have exceeded and is projected to continue to expand above the US national average, and where asking rents for office spaces are expected to see a continued upward trend."
Christina Tan, CEO of Keppel Capital, the asset management arm of Keppel Corporation, said that the listing of Keppel-KBS US Reit is part of Keppel's aim to grow its fund management business, expand its geographic footprint into the stable US market, and tap growing demand by global investors for attractive US real estate investments.
"The Reit will be able to draw on Keppel Capital's expertise in the management of listed Reits and strong relationships with Asian investors, as well as KBS' established investment and asset management experience in US commercial real estate," Ms Tan said.
Keppel-KBS US Reit's distribution yield for 2018 is estimated to be 6.8 per cent, with an expected distribution yield of 7.2 per cent for 2019, reflecting a total return of 12.6 per cent.
The Reit's yield growth is driven by built-in rental escalations ranging from 2-3 per cent for about 97.5 per cent of the portfolio leases, the opportunity to renew expiring leases at potentially higher market rent rates, as well as potential growth in portfolio occupancy.
The pipeline of potential acquisitions will come from third-party vendors through the sponsors' deal origination capabilities.
Keppel-KBS US Reit has a distribution policy to pay out 100 per cent of its annual distributable income from the listing date to the end of 2019. It will subsequently distribute at least 90 per cent of annual distributable income on a semi-annual basis.
Distributions will be declared in US dollars, and unitholders will receive distributions in Singapore dollars, equivalent to the US dollar distribution declared. Unitholders can also choose to receive their distribution in US dollars.
Good to buy? What are your thoughts?
- wong chee tat :)
Showing posts with label Keppel-KBS US Reit. Show all posts
Showing posts with label Keppel-KBS US Reit. Show all posts
Thursday, 2 November 2017
Friday, 27 October 2017
Keppel-KBS US REIT Seeks to Raise $448 Million in Singapore IPO
Keppel-KBS US REIT Seeks to Raise $448 Million in Singapore IPO
By Crystal Tse
October 25, 2017, 4:27 PM GMT+8
Intial portfolio comprises 11 office properties in the U.S.
Real estate trust units expected to begin trading Nov. 9
Keppel-KBS US REIT, which comprises 11 office properties in the U.S., is seeking to raise $448 million in a Singapore initial public offering.
The trust is offering 509.1 million units at $0.88 apiece, according to terms for the deal obtained by Bloomberg. The REIT is forecasting a dividend yield of about 6.8 percent for the 2018 fiscal year and 7.2 percent for 2019, the terms show.
The Keppel-KBS offering, only the second IPO from a property trust in the city-state this year, would add to the $5.8 billion of such deals on the bourse in the past five years, according to data compiled by Bloomberg. Units of Manulife U.S. REIT, which is backed by office buildings in Los Angeles and Atlanta, have risen about 9.6 percent in Singapore since its IPO last year.
Cromwell Property Group last month shelved the listing of a property trust that was set to become Singapore’s first euro-denominated IPO.
Sponsors of the REIT, Keppel Capital Holdings Pte and KBS Pacific Advisors Pte, will each hold as much as 9.5 percent of the trust after the offering.
Cornerstone investors including Affin Hwang Asset Management Bhd., Hillsboro Capital Ltd. and DBS Bank Ltd. agreed to buy a combined $217 million of the deal, according to the terms. Private banking clients of DBS and Credit Suisse Group AG are also participating as cornerstones.
Keppel-KBS expects to begin trading Nov. 9, the terms show. Bank of America Corp., Citigroup Inc., Credit Suisse and DBS are joint bookrunners.
- wong chee tat :)
By Crystal Tse
October 25, 2017, 4:27 PM GMT+8
Intial portfolio comprises 11 office properties in the U.S.
Real estate trust units expected to begin trading Nov. 9
Keppel-KBS US REIT, which comprises 11 office properties in the U.S., is seeking to raise $448 million in a Singapore initial public offering.
The trust is offering 509.1 million units at $0.88 apiece, according to terms for the deal obtained by Bloomberg. The REIT is forecasting a dividend yield of about 6.8 percent for the 2018 fiscal year and 7.2 percent for 2019, the terms show.
The Keppel-KBS offering, only the second IPO from a property trust in the city-state this year, would add to the $5.8 billion of such deals on the bourse in the past five years, according to data compiled by Bloomberg. Units of Manulife U.S. REIT, which is backed by office buildings in Los Angeles and Atlanta, have risen about 9.6 percent in Singapore since its IPO last year.
Cromwell Property Group last month shelved the listing of a property trust that was set to become Singapore’s first euro-denominated IPO.
Sponsors of the REIT, Keppel Capital Holdings Pte and KBS Pacific Advisors Pte, will each hold as much as 9.5 percent of the trust after the offering.
Cornerstone investors including Affin Hwang Asset Management Bhd., Hillsboro Capital Ltd. and DBS Bank Ltd. agreed to buy a combined $217 million of the deal, according to the terms. Private banking clients of DBS and Credit Suisse Group AG are also participating as cornerstones.
Keppel-KBS expects to begin trading Nov. 9, the terms show. Bank of America Corp., Citigroup Inc., Credit Suisse and DBS are joint bookrunners.
- wong chee tat :)
Thursday, 26 October 2017
Keppel-KBS US Reit prices IPO at 88 US cents
Keppel-KBS US Reit prices IPO at 88 US cents
PUBLISHEDOCT 26, 2017, 5:00 AM SGT
Lynette Khoo The Business Times
Keppel-KBS US Reit, sponsored jointly by Keppel Capital and KBS Pacific Advisors, is issuing 262.77 million units at US$0.88 apiece in an initial public offering (IPO).
Separately, the sponsors - which jointly own the Reit manager - are subscribing for some 119.43 million units while cornerstone investors have agreed to subscribe for 246.37 million units at the offer price.
These cornerstone investors are Affin Hwang Asset Management, Hillsboro Capital and DBS Bank, as well as certain private banking clients of Credit Suisse and DBS Bank, the preliminary IPO prospectus shows.
The over-allotment option will not exceed 12 per cent of the number of units to be issued under the placement and public offer tranche.
The proportion of placement and public offer tranche is not fixed yet.
Keppel-KBS US Reit said that it is expected to raise gross proceeds of about US$553.1 million (S$753.9 million) from this whole exercise.
The public offer opens next Thursday and closes on Nov 7.
Trading of units on the Singapore Exchange is expected to begin on Nov 9.
With an attractive distribution yield and total return, the Reit's distribution yield for next year is estimated to be 6.8 per cent, with expected distribution yield growth of 5.8 per cent for 2019, reflecting a total return of 12.6 per cent.
Some 79.5 per cent and 75.2 per cent of cash rental income for next year and 2019 respectively are derived from existing leases.
At least three-quarters of interest expense will be hedged.
The initial portfolio of Keppel-KBS US Reit will comprise 11 freehold office properties in the US worth US$804 million, with an aggregate net lettable area (NLA) of 3.23 million sq ft.
These properties are in Seattle and Sacramento on the West Coast; Denver, Austin and Houston in the central region; as well as Atlanta and Orlando in the East Coast.
They have a stable weighted average lease expiry by NLA of 3.7 years as at June 30, with below-market average rents for expiring leases.
"This offers the opportunity to lease expiring space at potentially higher market rent rates," Keppel-KBS US Reit said.
No single year has more than 20 per cent of total leases expiring.
Upon listing, Keppel-KBS US Reit will also have an aggregate leverage of 36 per cent and average debt tenure of 4.5 years, providing debt headroom of some US$131.6 million to fund future growth.
To enjoy tax transparency under US taxation rules, no single unit holder of the US Reit will hold more than 9.8 per cent of the outstanding units.
- wong chee tat :)
PUBLISHEDOCT 26, 2017, 5:00 AM SGT
Lynette Khoo The Business Times
Keppel-KBS US Reit, sponsored jointly by Keppel Capital and KBS Pacific Advisors, is issuing 262.77 million units at US$0.88 apiece in an initial public offering (IPO).
Separately, the sponsors - which jointly own the Reit manager - are subscribing for some 119.43 million units while cornerstone investors have agreed to subscribe for 246.37 million units at the offer price.
These cornerstone investors are Affin Hwang Asset Management, Hillsboro Capital and DBS Bank, as well as certain private banking clients of Credit Suisse and DBS Bank, the preliminary IPO prospectus shows.
The over-allotment option will not exceed 12 per cent of the number of units to be issued under the placement and public offer tranche.
The proportion of placement and public offer tranche is not fixed yet.
Keppel-KBS US Reit said that it is expected to raise gross proceeds of about US$553.1 million (S$753.9 million) from this whole exercise.
The public offer opens next Thursday and closes on Nov 7.
Trading of units on the Singapore Exchange is expected to begin on Nov 9.
With an attractive distribution yield and total return, the Reit's distribution yield for next year is estimated to be 6.8 per cent, with expected distribution yield growth of 5.8 per cent for 2019, reflecting a total return of 12.6 per cent.
Some 79.5 per cent and 75.2 per cent of cash rental income for next year and 2019 respectively are derived from existing leases.
At least three-quarters of interest expense will be hedged.
The initial portfolio of Keppel-KBS US Reit will comprise 11 freehold office properties in the US worth US$804 million, with an aggregate net lettable area (NLA) of 3.23 million sq ft.
These properties are in Seattle and Sacramento on the West Coast; Denver, Austin and Houston in the central region; as well as Atlanta and Orlando in the East Coast.
They have a stable weighted average lease expiry by NLA of 3.7 years as at June 30, with below-market average rents for expiring leases.
"This offers the opportunity to lease expiring space at potentially higher market rent rates," Keppel-KBS US Reit said.
No single year has more than 20 per cent of total leases expiring.
Upon listing, Keppel-KBS US Reit will also have an aggregate leverage of 36 per cent and average debt tenure of 4.5 years, providing debt headroom of some US$131.6 million to fund future growth.
To enjoy tax transparency under US taxation rules, no single unit holder of the US Reit will hold more than 9.8 per cent of the outstanding units.
- wong chee tat :)
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