China-based BHG Retail REIT launches Singapore IPO

SINGAPORE: BHG Retail Trust Management has launched an initial public offering (IPO) of units in BHG Retail REIT (real estate investment trust) at an offering price of S$0.80 per unit, announced the China-based group in a press release on Wednesday (Dec 2).

This will make it the first listing on the mainboard of the Singapore Exchange (SGX) this year. The final prospectus of the IPO was filed with the Monetary Authority of Singapore on Wednesday.

BHG Retail REIT IPO Prospectus

Overview of BHG Retail REIT

BHG Retail REIT is a Singapore real estate investment trust (“REIT”) established with the investment strategy of investing principally, directly or indirectly, in a diversified portfolio of income-producing real estate which is used primarily for retail purposes (whether either wholly or partially), as well as real estate-related assets in relation to the foregoing, with an initial focus on the People’s Republic of China (“PRC”).

• The Sponsor: Beijing Hualian Department Store Co., Ltd
• IPO Price = $0.80
• Market Capitalization = $394.18 M (base on IPO offering Price and unit counts)
• Number of Units = 492.725 M (Page 61 of BHG Retail REIT IPO Prospectus)
  
• Net Assets = $550.846 M (Page 57 of BHG Retail REIT IPO Prospectus)
• NAV = $1.118
• Price /  NAV = 0.7156 (28.5% discount)
• 2015 Annualised Distribution Yield = 5.7% (4% without distribution undertaking)
• 2016 Annualised Distribution Yield = 6.3% (4.5% without distribution undertaking)
• 100% Distribution for 2015 and 2016, thereafter,  Minimum 90%.
• Distribution on Semi-Annual basis.
• Total Debt = $224.876 M (Page 57 of BHG Retail REIT IPO Prospectus)
• Total Asset = $819.527 M (Page 57 of BHG Retail REIT IPO Prospectus)
• Gearing Ratio = 27.44%

Other Singapore REITs for comparison.