Accordia Golf Trust, which will be backed by golf courses in Japan, is seeking as much as S$782 million ($626 million) in a Singapore initial public offering.
The business trust is offering 782 million units at 97 Singapore cents to S$1 each, according to a prospectus lodged with the Monetary Authority of Singapore today. It forecasts an annual yield excluding some items of 6.8 percent to 7 percent for the financial year ended March 2015, the prospectus shows.
Accordia Golf Co., which was formerly owned by Goldman Sachs Group Inc., is raising funds in a business trust offering after shareholders rebuffed a takeover bid from PGM Holdings K.K. last year. First-time share sales in Singapore have raised $686 million this year, down from $3 billion the same period last year, data compiled by Bloomberg show.
The trust will acquire 89 golf courses from Tokyo-based Accordia Golf Co., the prospectus shows. It plans to price the offering on July 24 and start trading on Aug. 1.
Accordia Golf Co. was set up by Goldman Sachs more than a decade ago to run failed courses it acquired after three recessions in ten years in Japan. The company, led by Chief Executive Officer Ryusuke Kamata, owns about 5 percent of Japan’s 2,400 golf courses and attracts more than 7.5 million visitors a year, according to its website.
Citigroup Inc. and Daiwa Securities Group Inc. are managing the offer.