Commercial & Industrial Property News Update

Singapore - IPO For First Yuan-Denominated REIT Shelved

October 29, 2012

Citing concerns over worsening market sentiment, ARA Asset Management Limited (ARA) has suspended the launch of its dual-denominated Dynasty REIT.

The anticipated initial public offering (IPO) of Dynasty REIT has been suspended due to a drop in investor sentiment on the back of worsening market conditions. This was announced by the REIT's sponsor ARA Asset Management Limited last week.

ARA said that the decision to hold back on the IPO was predicated on the weak market due to "lacklustre earnings results by large global corporations in the US and Europe". This is expected to adversely affect demand for Dynasty REIT, ultimately weakening its performance.

The sponsor emphasised that the suspension of the launch was decided "in the best interest for all stakeholders at the present time".

To be offered in both RMB and SGD, Dynasty REIT would have been the first dual-currency REIT to be launched in the Singapore market.

ARA maintained confidence in the potential growth of the office and retail sectors in China, and said it may explore launching a China-focussed REIT at a later date. It added that it was grateful for the strong support for Dynasty REIT from institutional and retail investors, as well as the Monetary Authority of Singapore and SGX.

The company announced that it would continue to focus on managing its inventory of quality properties held in its privately managed funds. It also added that it was optimistic that "more RMB products will soon emerge in the Singapore market".

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