Mr. Pua Seck Guan, former chief executive of CapitaMall Trust, intends to raise around S$1 billion through an initial public offering (IPO) of a real estate investment trust (REIT) in Singapore, said a source familiar with the situation.
The trust, to be launched by Perennial Real Estate, a real estate investment company established by Mr. Pua, will mainly consist of Chinese assets, the source said.
Meetings with potential investors will begin later this month, said the source, adding that, “if all goes well, the initial public offering will be launched in February, and listing is targeted for March.”
The listing structure will likely be similar to that of CapitaLand, which injected its retail assets into CapitaMalls Asia prior to its listing in November 2009.
Mr. Pua left CapitaMall Trust in 2008 to establish Perennial Real Estate, which is engaged in property and property-related activities including fund management, retail management and asset management.
While a spokeswoman for Perennial refused to confirm the IPO plans, she said: “Perennial Real Estate’s core business markets are China, India and Singapore and we continue to explore opportunities in these markets in the course of our business.”
The planned IPO comes as Singapore aims to establish itself as a base for real estate companies hoping to raise funds and as robust economic growth in the city-state boosts demand for commercial and residential space.