ascendas

The IPO comes as the property sector takes a dive due to concerns about rising interest rates, but even so, it was accompanied in the market yesterday by Ascendas Hospitality Trust, which raised $113 million to finance an acquisition.

The proceeds from the upsized deal will be used to acquire two industrial properties.

The trust gets the deal done despite a last minute change to its hotel portfolio and prices at a 7.9% yield for the current fiscal year.

The trust, which first started pre-marketing in May, has signed up three cornerstone investors for the $450 million deal and is offering a yield of up to 7.8% for March 2013.

As global markets continue to falter, the trust decides not to go ahead with its $700 million initial public offering this week, but may return to the market soon.

The deal marks the first equity fundraising in the Singapore Reit sector this year and is priced at the bottom of the range for an adjusted yield of 4%.

Central China Real Estate offers the first double-digit yield on a bond in the Singapore dollar market, while Ascendas sells a S$300 million perpetual and Hutchison Whampoa meets Singapore investors.

The latest placement brings the total raised by A-Reit this year to $485 million.

The Reit-like vehicle backed by Indian assets raises a total of $331 million with an implied yield of 4.75%.