Dasin Retail Trust seeks Singapore IPO to raise at least $122.5m

Dasin Retail Trust is seeking to raise at least 586.4 million yuan (S$122.5 million) through a Singapore initial public offering, according to a preliminary prospectus lodged with the Monetary Authority of Singapore on Wednesday (Dec 28).

The trust, sponsored by Zhongshan Dasin Real Estate Co, will have an indicative market cap of S$439.7 million, based on its offer price which was not disclosed in the document.

Dasin Retail Trust’s key investment mandate is to invest in, own or develop land, uncompleted developments and income-producing real estate in Greater China, mainly for retail use.

The trust’s initial portfolio will comprise three retail malls in Zhongshan City – Xiaolan Metro Mall, Ocean Metro Mall and Dasin E-Colour – which have a total gross floor area of about 314,884.9 square metres. The portfolio was valued at 4.6 billion yuan as at June 30, 2016.

Units will be offered to institutional investors under a placement tranche as well as a public offering here, subject to over-allotment options, said the trust manager Dasin Retail Trust Management in the preliminary prospectus.

It added that Dasin Retail Trust will benefit in terms of acquisition growth in the Pearl River Delta region where the sponsor has an “active real estate presence”.

The sponsor has been granted right of first refusal (ROFR) to the trust manager for 14 completed and uncompleted properties.

In addition, the trust has also secured 120.8 million yuan (S$25 million) from two cornertone investors – China Orient Asset Management (International) Holding and Haitong International Investment Fund SPC.

The sole financial adviser, global coordinator and issue manager for the offering is DBS Bank, which is also the joint bookrunners and underwriters, alongside Bank of China and Haitong International Securities.