Far East Organization, Singapore’s biggest closely held developer, is seeking to raise as much as S$656.3 million ($527 million) in an initial public offering of a Singapore hotel trust.
Far East Hospitality Trust plans to sell 705.7 million stapled securities at a range of between 86 to 93 Singapore cents, according to a prospectus lodged with the Monetary Authority of Singapore today.
The IPO may be the biggest this year in Singapore, where $785 million has been raised so far in 2012 compared to $7 billion in the first seven months of 2011, according to data compiled by Bloomberg. Ascendas Hospitality Trust (ASHT) started trading in the city last month after raising S$459 million.
The initial portfolio of the trust will comprise 11 properties, according to the offering document. They consist of seven hotels, including Albert Court Village Hotel and Orchard Parade Hotel, as well as four serviced residences. The distribution yield for this year is projected to be as much as 6.5 percent.
DBS Group Holdings Ltd., HSBC Holdings Plc and Goldman Sachs Group Inc. are managing the IPO.
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