Manulife U.S. REIT Opens Lower in Singapore Trading

  • Trust is backed by Manulife Financial’s U.S. properties
  • The Canadian insurer raised $519 million for the REIT IPO

Manulife U.S. Real Estate Investment Trust, backed by Canada’s largest life insurer, opened lower on its first day of trading in Singapore.

The units opened at 82 cents apiece at 2 p.m. local time, 1.2 percent below the offering price of 83 cents, and slid to 79.5 cents at 2:10 p.m. Singapore time. The trust, backed by three office buildings in Los Angeles and Atlanta, will offer a dividend yield of as much as 6.6 percent for this year and 7.1 percent for 2017, according to the company prospectus.

Toronto-based Manulife Financial Corp. raised $519.2 million in its second attempt at a Singapore initial public offering of its U.S. properties, including placements to sponsors and cornerstone investors. The REIT delayed its IPO in July last year, citing volatile market conditions. It had previously offered an estimated 6.3 percent dividend yield for 2016.

The offering is Singapore’s first initial share sale above $100 million since BHG Retail REIT raised $194 million in November. The listing gives a boost to the city-state’s exchange, which had the smallest haul of IPOs among the region’s four largest stock markets in 2015.

Manulife U.S. REIT’s cornerstone investors include private banking clients of Credit Suisse Group AG and DBS Group Holdings Ltd., the prospectus showed. DBS Bank Ltd., Malaysia’s Fortress Capital Asset Management, Oman Investment Fund and Lucille Holdings Pte are also cornerstone investors in the offering.

DBS, China International Capital Corp., Credit Suisse and Deutsche Bank AG arranged the sale, according to the filing.

(Corrects yield forecasts in second paragraph.)
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