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Parkway Life REIT
Issue Statistics:
Offer Size: 288.9m units (excluding over-allotment option of up to 43.3m units)
Public Tranche ? 5.9m units
International Placement Tranche ? 253.6m units
Shareholders Tranche ? 29.4m units
(Offered to Singapore-registered shareholders of Parkway Holdings)
Price: S$1.28 per unit
NAV per unit: S$1.25
Market Cap: S$769.8m
Close: 13 August 2007, 12:00 noon
Commencement of trading: 23 August 2007, 2:00pm (trading on ?ready? basis)
Acquisition growth strategy.
Parkway Life REIT has been granted the right of first refusal by Parkway Holdings over future sale of healthcare and related facilities located in the Asia Pacific region. Parkway Holdings operates 15 hospitals in Singapore, Brunei, India and Malaysia. It also operates an ambulatory surgical centre and clinics in China and an aesthetics clinic in Vietnam. These assets provide a pipeline of potential future acquisitions to enhance Parkway Life REIT?s distribution yield.
Parkway Life REIT will also be working on its own or jointly with Parkway Holdings to identify greenfield sites for development of hospital and healthcare-related facilities. It will also seek to acquire third party assets of hospital and healthcare-related properties.Parkway Life REIT?s investment strategy is regional in scope. It will source and acquire assets in the Asia Pacific region that are aligned to its investment strategy of enhancing returns to unitholders through distribution yield accretive and potential for future earnings and capital growth. Parkway Life REIT will also seek to improve portfolio diversification and asset quality.
Parkway Life REIT invests in income-producing real estate assets in the Asia Pacific region used primarily for healthcare and related purposes. They include hospitals, ambulatory surgery centres, primary clinics, medical office building, step-down care facilities, research & development facilities and pharmaceutical facilities in regions such as China, India, South East Asia and the Middle East.
The initial portfolio comprising Mount Elizabeth Hospital, Gleneagles Hospital and East Shore Hospital represents the largest portfolio of private hospitals in Singapore. Mount Elizabeth Hospital and Gleneagles Hospital, in particular, are located in the heart of prime Orchard Road shopping district. Parkway Holdings will lease the three hospitals from Parkway Life REIT for an initial term of 15 years with an option to extend for another 15 years.
How about taking advantage of the intraday volatility momentum? e.g. Ascendas India ReIT.
In such a bearish climate, shortist are all out in force to short any potential IPO down. Instead of bidding for the IPO, why not wait for shortist to short it real low before we go in?
I think this counter is a good one to apply. Some considerations to take note:
- Market is quite bearish -> apply for IPO now and possibly see first day closing price lower than IPO.
- Whether the price on 1st trading day goes above or below IPO, keep this baby because Singapore is poised to be THE centre for healtcare in the SEA region or even Asia.
- They are looking at acquisitions overseas to expand their portfolio.
My 2 cents worth.
Not a conducive environment now for IPOs I think.... hope I'm wrong though...
hi ricky,
do u mean 12/8/07 open or close for application? Today oredi the 10th
Is this an IPO not to be missed?.
If I remember correctly, it should be 12 August.
When tis ipo closes for application?
Lost quite a bit in last 2 weeks.
No more bullets for this one although I really like to vest in this.
Parkway Life Reit hopes to double its asset portfolio size in 2 years' time, the Reit's manager told BT yesterday. Right now, the Reit's portfolio comprises 3 private hospitals and medical offices in S'pore worth $774.6 million in total.
Justine Wingrove, CEO of the Reit's manager, aims to double the portfolio size to about $1.6 billion by end-'09. A new acquisition could be expected in the next 6 months, Ms Wingrove said.
'We have 4 key markets that we are focusing on - Si'pore, Malaysia, India and China,' she said.
'There are more immediate opportunities in Singapore, but we are also looking at opportunities elsewhere.' The trust, she said, can easily draw from sponsor Parkway Holdings' asset base.
Parkway, which is Asia's largest listed healthcare operator, has some 17 hospitals and medical centres across Asia under its umbrella, including the three being divested into the Reit.
No more cash for equity. :(
DIE DIE must try.......!!!!!
Parkway, Southeast Asia's biggest healthcare group by market value, said its investment trust will raise as much as $391 million in its share offering. The Parkway Life REIT, backed by 3 Singapore hospitals, will sell 292.865 million units at an indicative price of $1.00 to $1.34 a unit, according to the prospectus.
The company said cornerstone investors such as fund managers will separately subscribe to 84.2 million units, which would help increase the total capital raising to as much as $504 million. The company said the REIT's portfolio will eventually grow to include assets in the region.
Citigroup and UBS are arranging the deal.
The REIT would be Singapore's 2nd property trust based on hospital assets following the listing in Dec of First REIT by the Lippo Group, controlled by Indonesia's Riady family.
Parkway has been on an expansion drive outside Singapore.