Back

Latest Forum Topics / Others

Post Reply

First Real Estate Investment Trust IPO Post Reply Rate topic
YongJiu Veteran	06-Dec-2006 17:36        YongJiu About Contact  Quote this Post!
x 0   x 0  Alert Admin	Indonesia's Lippo's First REIT optimistic about prospects SINGAPORE (XFN-ASIA) - First Real Estate Investment Trust (First REIT), a hospital REIT, is optimistic about the prospects for its hospitals in Indonesia amid expectations that spending on health care there will remain strong in the next few years, according to Ronnie Tan, the chief executive of its manager, Bowsprit Capital Corp.     Trading in First REIT shares is due to start here Monday.     First REIT is raising about 99.68 mln sgd by selling 140 mln shares at 0.71 sgd in its initial public offering, which comprises a placement tranche of 133 mln shares and a retail tranche of 7 mln. An additional 20 mln shares may be sold to cover oversubscription.     The company is raising another 39.76 mln sgd from the sale of 56 mln other shares to cornerstone investors, including Raiffeisen Zentralbank Osterreich AG, ASM Funds, Quantum and Prima.     The 139.4 mln sgd in proceeds from the IPO and the sale of shares to cornerstone investors will be used to finance in part the acquisition of Lippo group unit Lippo Karawaci's three hospitals and one hotel in Indonesia, valued at 257 mln sgd.     Lippo Karawaci, which will own about 27 pct of First REIT, assuming the over-allotment shares are not sold, will receive additional shares in First REIT as part of the consideration for the hospitals and hotels being acquired by the trust.     These assets are the Siloam Hospitals Lippo Karawaci, Siloam Hospitals West Jakarta, Siloam Hospitals Surabaya and the Imperial Aryaduta Hotel and Country Club. The hotel, which is near the Siloam Hospitals Lippo Karawaci in Jakarta, accommodates mainly hospital patients and their families, as well as business travellers.     Tan told XFN-Asia in an interview that there had been a significant uptrend in these businesses because the economies of big cities in Indonesia had been improving .     He said that in the last 3-4 years spending on health care in Indonesia had been rising by more than 10 pct annually, and that he expected this growth to continue at a double-digit rate.     Tan said that First REIT's income would be mainly from the rent Lippo Karawaci would pay for the hospitals and the hotel, but that this income could be bolstered by rising revenue at the hospitals and hotel. This is because the master lease agreement with Lippo Karawaci says that First REIT will get a share if revenue at the hospitals and hotel grows by more than 5 pct.     This rate of growth is easily achievable, considering that revenue at these businesses has been growing at double-digit rates in the last few years, Tan said.     He said there was room for these businesses to grow organically because their occupancy rates were still below 80 pct. Tan said occupancy rates had ranged between 65 pct and 75 pct in the first half of this year, up from 65-68 pct last year.     For the first half of this year, First REIT posted a net profit of 8.17 mln sgd on revenue of 50.95 mln sgd. For last year, First REIT posted a net profit of 11.52 mln sgd on revenue of 85.05 mln sgd.     First REIT expects rental income of 24.60 mln sgd next year, helping it to meet its forecast distribution yield of 9.17 pct.     Tan said First REIT was seeking acquisition opportunities here and in Indonesia, in line with its aim to become a pan-Asian health care REIT.     First REIT has signed a memorandum of understanding (MoU) with Pacific Healthcare Holdings Ltd about studying the possibility of buying three nursing homes here that Pacific Healthcare owns and operates.     It has also signed an MoU about its purchase of a hospital owned by PT Nusantara Medicalindon in the Indonesian province of North Sumatra.     Tan said the acquisitions would be financed largely through borrowing, because First REIT had zero gearing and could gear up to 35 pct under the rules here.     In view of the trust's present asset base, Tan estimates that First REIT can theoretically borrow as much as 80 mln sgd, although the acquisitions it is now pursuing here and in Indonesia would require less than that amount. Financial details of the acquisitions are still being worked out.     Tan said that once the acquisitions were completed, in the first quarter of next year, First REIT would scout for other acquisitions in neighboring countries.     "We are looking to buy other assets, possibly in Thailand, China, Vietnam, Malaysia and the Philippines," Tan said.
Useful To Me  Not Useful To Me
YongJiu Veteran	06-Dec-2006 16:59        YongJiu About Contact  Quote this Post!
x 0   x 0  Alert Admin	thx for your info, will try it with UOB ATM tomorrow!
Useful To Me  Not Useful To Me
elizlow Senior	06-Dec-2006 16:29        elizlow About Contact  Quote this Post!
x 0   x 0  Alert Admin	Yongjui Senior, I just applied at DBS ATM.. Small small only. Good Luck !!
Useful To Me  Not Useful To Me
YongJiu Veteran	06-Dec-2006 16:16        YongJiu About Contact  Quote this Post!
x 0   x 0  Alert Admin	hi nick, in sgx you manage your own risk.. no risk no gain, of course there is always black sheep among those.... look at those high return stock that running above 18 times PE do you ask them is it worth to take the risk to invest?
Useful To Me  Not Useful To Me
YongJiu Veteran	06-Dec-2006 16:08        YongJiu About Contact  Quote this Post!
x 0   x 0  Alert Admin	Btw Merrill Lynch and Oversea-Chinese Banking Corp are joint lead managers for the deal. So I think only OCBC has the hand for the small fish like me.
Useful To Me  Not Useful To Me
YongJiu Veteran	06-Dec-2006 16:06        YongJiu About Contact  Quote this Post!
x 0   x 0  Alert Admin	I just check with UOB & DBS internet IPO application is not availble. Called OCBC said it avalible at OCBC ATM but I'm not too sure abt UOB & DBS ATM. can any one pls confirm here?
Useful To Me  Not Useful To Me
nickyng Supreme	06-Dec-2006 15:29        nickyng About Contact  Quote this Post!
x 0   x 0  Alert Admin	is this counter worth taking the IPO risk? any black mkt stack price ? hee...
Useful To Me  Not Useful To Me
IreneL Senior	06-Dec-2006 15:17        IreneL About Contact  Quote this Post!
x 0   x 0  Alert Admin	YongJiu Can you not apply via the internet as well?
Useful To Me  Not Useful To Me
YongJiu Veteran	06-Dec-2006 15:03        YongJiu About Contact  Quote this Post!
x 0   x 0  Alert Admin	IPO at $S0.71, did any one tikam tikam with OCBC ATM? guess that the only choice we have right?
Useful To Me  Not Useful To Me

                                                         First   < Newer   21-29 of 29   Last