INTRODUCTION TO SOILBUILD BUSINESS SPACE REIT

Soilbuild REIT is a Singapore real estate investment trust (“REIT”) established with the principal investment strategy of investing on a long-term basis, directly or indirectly, in a portfolio of income-producing real estate used primarily for business space purposes in Singapore as well as real estate-related assets. 

For the purposes of this Prospectus, the term “business space” refers to (i) all properties zoned as business park (which includes business space used primarily for office, including any ancillary usage, so long as such usage is permitted under the relevant regulation) and (ii) industrial properties (including, but not limited to, ramp-up facilities, flatted factories and light industrial properties) which are used primarily for, among others, manufacturing, engineering, logistics, warehousing, electronics, marine, oil & gas, research and development and value-added knowledge-based activities.

SOILBUILD REIT’S PORTFOLIO

Soilbuild Business Space REIT Distribution Yield

Fundamental Summary

• IPO Price = $0.77 – $0.80
• Projected DPU Yield =  7.3% to 7.6% (2013)
• Number of Units = 586,532,000  (Page 1 of Soilbuild Business Space REIT IPO Prospectus)
• NAV = $0.80 –> IPO price is 3.75% (base on $0.77 IPO price) Discount to the NAV, on par to NAV (base on $0.80 IPO price).  (Page 40 of Soilbuild Business Space REIT IPO Prospectus)
• Total Debt = S$274,656,000 (Page 40 Balance Sheet Soilbuild Business Space REIT IPO Prospectus)
• Total Asset = S$935,000,000 (Page 40 Balance Sheet Soilbuild Business Space REIT IPO Prospectus)
• Gearing Ratio = 29.9% (Page 16 of Soilbuild Business Space REIT IPO Prospectus)

Soilbuild Business Space REIT Structure

Check out HERE on how to interpret those financial ratio (e.g. NAV, Gearing Ratio) and understand why it is important. Will be using this Soilbuild Business Space REIT as one of the case studies in my coming REIT class. Also see other Singapore REIT comparison table here to see whether this Soilbuild Business Space REIT IPO Prospectus is worth to subscribe.