SINGAPORE Feb 5 Lotte Shopping Co Ltd
, South Korea's biggest shopping mall owner, will
decide this week whether to start marketing a $1 billion real
estate investment trust or delay it due to the sell-off in
emerging markets, people with knowledge of the matter said on
If Lotte Shopping decides to launch the mall REIT, the
marketing process could start as early as Monday. The company
already has the approval of the Singapore Stock Exchange to list
the REIT, the sources said.
"The markets are quite challenging," said a person with
direct knowledge of the deal. "We are waiting for the right
A Lotte spokesman in Seoul declined to comment on the timing
for the REIT. The sources also declined to be identified because
the details of the IPO were not yet public.
Concerns about economic growth in China and other emerging
markets have triggered a sell-off in riskier assets as investor
appetite for emerging markets wanes.
The uncertainty over the Lotte IPO launch also follows the
poor debuts of other Asian offerings.
HK Electric Investments Ltd, a trust spun out of
Li Ka-shing's business empire, fell 2 percent on the first day
of trading last week as Hong Kong investors spurned a safe-haven
utility ahead of juicier growth stocks set to come to market
later this year.
Singapore's latest REIT IPO, OUE Commercial Real Estate
Investment Trust, is also currently trading below its
The Lotte REIT would be the biggest IPO in Singapore since
February 2013 when Mapletree Greater China Commercial Trust
raised $1.3 billion through a REIT.
DBS, Goldman Sachs, Nomura and
Standard Chartered have been hired to manage the Lotte
The initial portfolio is likely to consist solely of Korean
(Reporting by Daniel Stanton and Saeed Azhar in SINGAPORE and
Joyce Lee in SEOUL; Editing by Miral Fahmy)