Another Japan Reit Seeks Listing On SGX

Source : The Business Times, October 19, 2007

APL Japan Trust hopes to raise up to $514.9m as it submits prospectus

APL Japan Trust lodged a prospectus with the Monetary Authority of Singapore yesterday, making it the second Japan-based real estate investment trust (Reit) to seek a listing on the Singapore Exchange (SGX) this month.

APL Japan Trust will offer 391.32 million units to institutional and other investors in Singapore and 20.59 million units to the public here at between $1.05 and $1.25 per unit.

Based on the target price, it hopes to raise between $432.5 million and $514.9 million.

JPMorgan is the sole financial adviser for the offering, while JPMorgan and Lehman Brothers International are joint global coordinators and joint bookrunners. UOB Asia is international co-lead manager and coordinator of the public offer.

The Reit sponsor, Asia Pacific Land, is a Japanese real estate company.

It has assets of more than 100 billion yen (S$1.26 billion) under management, as well as development projects totalling 159,000 square metres across Japan.

APL Japan Trust will comprise nine commercial buildings in Tokyo, Yokohama and Nagasaki initially. These buildings have an appraised value of $838.8 million and are primarily for retail use plus 4 per cent for office space.

According to the prospectus, APL Japan Trust forecasts an initial distribution yield of 4.34 to 5.16 per cent per unit and cash distribution growth of about 7 per cent.

The Reit has right of first refusal to five acquisition and development pipeline platforms, including four existing pre-stabilised assets in APL Group totalling about 95,000 sq m and and projects under development of about 61,000 sq m in total.

Earlier this month, Saizen Reit lodged its prospectus. It hopes to raise $244.4 million in an initial public offering at between $1 and $1.08 per unit.

Saizen Reit's initial portfolio will comprise 146 residential buildings in 12 cities across Japan and is forecast to pay dividend yields of between 6.09 and 6.51 per cent per unit this year and 5.29 to 5.65 per cent next year.