Prime REIT

From CNA,

SINGAPORE : Prime REIT is planning to raise about S$570 million from its initial public offering scheduled for mid-September. It has lodged its preliminary prospectus with the Monetary Authority of Singapore for a listing on the Singapore Exchange mainboard.

Prime REIT - managed by a unit of the German insurer Ergo - is offering about 592 million units at between 93 and 98 Singapore cents each. The REIT will initially invest in and own the Wisma Atria shopping mall. Prime REIT currently owns 74 percent of Wisma Atria and 27 percent of another mall, Ngee Ann City, with a total value of S$1.3 billion.

According to the draft prospectus, Prime REIT expects to pay a distribution per unit of 2.51 Singapore cents for the six months to December 31 this year. The distribution will be 5.25 Singapore cents for 2006. And if the IPO is priced at the top end of 98 cents, the annualised distribution will be 5.12 percent for this year and 5.35 percent next year. The IPO will have shares set aside for both the public and institutions. The units that will be sold through the IPO represent about 57 percent of the trust. - CNA

My Comments - The one we'd been waiting for! But, yield is not better than Suntec :D