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Financials

Singapore's Sabana REIT to raise at least $471 mln in IPO

SINGAPORE, Nov 9 (Reuters) - Sabana Shariah Compliant REIT will sell about 605.8 million units at S$1.00-S$1.10 each in the first launch of a Islamic real estate investment trust in Singapore, according to a preliminary prospectus filed on Tuesday.

The float will raise at least S$605.8 million ($471.4 million) based on the minimum issue price. The figure does not include the 27 million units to be taken up by the REIT sponsors.

Sabana controls 15 industrial properties in Singapore with an aggregate floor area of about 3.3 million square feet.

The manager of the REIT has forecast a distribution yield of 8.45 percent for 2011 and 8.48 percent for 2012 based on the minimum offer price, the prospectus said.

FIL Investment Management Hong Kong, a unit of U.S. fund manager Fidelity, and Bahrain’s al-Salam Bank are among the cornerstone investors that will buy 101.8 million units in the IPO.

HSBC is the sole financial adviser for the Sabana IPO, and is joint global coordinator with United Overseas Bank and Daiwa Capital Markets.

The draft prospectus did not say when the Sabana IPO will be priced or when the units are likely to begin trading.

Reporting by Kevin Lim, Writing by Raju Gopalakrishnan

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