SPH gets go-ahead for S$3.07b REIT listing

Two malls to be injected into SPH REIT.

According to a release, Singapore Press Holdings Limitedhas received an eligibility-to-list (“ETL”) letter from Singapore Exchange Securities Trading Limited in connection with the proposed initial public offering and listing of SPH REIT on the Main Board of the SGX-ST. 

In line with this development, SPH has scheduled an Extraordinary General Meeting to be convened on Tuesday, June 18, 2013, to seek shareholders‟ approval for (i) the establishment of SPH REIT, (ii) the proposed injection of Paragon and The Clementi Mall into SPH REIT, and (iii) the payment of a Special Dividend upon completion of the Offering.

SPH REIT will be established to principally invest, directly and indirectly, in a portfolio of income-producing real estate used primarily for retail purposes in Asia-Pacific as well as real estate-related assets.

The initial portfolio of properties of SPH REIT is expected to comprise (i) a 99-year leasehold interest in Paragon commencing on the date of listing of SPH REIT on the Main Board of the SGX-ST and (ii) a 99-year leasehold interest in The Clementi Mall commencing from 31 August 2010 and expiring on 30 August 2109 , which are valued at S$3.07 billion in aggregate.

SPH plans to sell Paragon to the REIT Trustee, DBS Trustee Limited, for a fixed consideration of S$2.5 billion, and The Clementi Mall to the REIT Trustee for a fixed consideration of S$570.5 million.

SPH is expected to hold approximately 70% of SPH REIT units upon listing, providing SPH shareholders with continued majority ownership of the Properties. The Group also expects to be closely involved in SPH REIT through its ownership of the REIT Manager and the property manager;