AEP Investment Management and HNA Group's joint venture has included an asset from the U.K. for the duo's planned initial public offering of a commercial real estate investment trust, The Edge Markets Singapore reported.
The Trident Place Business Park in Hatfield, U.K., a 100% occupied property from AEP's U.K. separate account fund, has been included in the assets to be listed, which are now valued at S$1.5 billion, up from the initial S$1 billion. Other properties that will be included in the portfolio are the StarHub Green in Ubi, Singapore, and three Australian assets located in Brisbane, Adelaide and Sydney.
With an IPO gearing set at a possible 28.6%, the REIT also has the potential to add more properties through acquisitions, with its sponsors giving it the right of first refusal to two U.K. properties, according to the May 29 report.
The estimated market capitalization for the REIT is expected to be between S$780 million to S$800 million, while the total offer size will be in the range of S$430 million and S$450 million, the report noted. Making investments in commercial and business parks in Australia, Singapore and the U.K. is the REIT's mandate.
As of May 30, US$1 was equivalent to S$1.39.