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China-based BHG Retail REIT launches Singapore IPO

Via Channel News Asia : 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.

According to BHG Retail, the IPO will be the first “pure-play China retail REIT sponsored by an established PRC homegrown retail operator, Beijing Hualian Department Store”. Under the IPO, it will offer 151,169,000 units for sale.

It has set aside at least 8,000,000 units for retail investors, and the rest (a maximum of 143,169,000 units) will be offered by way of an international placement to investors, including institutional and other investors in Singapore.

Application for shares will close at 12pm on Dec 7. Listing and trading of BHG Retail REIT on SGX is expected to start at 2pm on Dec 11.

Separate from the IPO, Beijing Hualian Group (Singapore) International Trading (the Strategic Investor) and Beijing Hualian Department Store (the Sponsor) have entered into separate subscription agreements to subscribe for 148,310,300 units and 24,636,300 units respectively at the Offering Price.

BHG Retail REIT has also secured S$134.9 million worth of commitments from four cornerstone investors: China Life Insurance, China Hi-Tech Holding, China Merchants Bank Asset Management and Dr Chanchai Ruayrungruang, chairman of the board of Reignwood Group and Red Bull Group China.

BHG Retail REIT intends to raise gross proceeds of approximately S$394.2 million from the offering, the issuance of the Sponsor Units, the Strategic Investor Units and the Cornerstone Units.

DBS Bank is the financial adviser, issue manager, bookrunner and underwriter for the IPO. China International Capital Corporation (Singapore) is the lead manager, while Bank of China (Singapore Branch), Industrial and Commercial Bank of China and United Overseas Bank are co-managers for the IPO.

BHG Retail Trust Management is an indirect wholly owned subsidiary of Beijing Hualian Department Store, while Beijing Hualian Department store currently owns and manages several malls in China.

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