Singapore-based Ascendas India Trust (AIT) has launched the first ever initial public offering (IPO), which raised funds on the Singapore Stock Exchange, aiming to own property in India.
The size of the IPO was S$500 million, while the offer price was S$1.18, said officials of JPMorgan, the joint bookrunner and sole financial advisor for the mega issue.
AIT was established in Singapore “with the objective of owning income-producing real estate used primarily as business space in India”, said Kaustubh Kulkarni, executive director for real estate at JPMorgan.
The trust’s initial portfolio consists of four business parks in three IT centres in India, and it plans to grow organically, as well as through acquisitions.
The investors could expect a yield of 4.75 percent and 5.81 percent in FY08 and FY09 respectively, on their investment in AIT shares.
Meanwhile, JPMorgan said in a research study on India’s property market that the industry is in the foothills of a sustained period of growth.
JPMorgan said property prices seem to be at risk, considering concerns on potential oversupply and rate increases. The correction in some micro markets cannot be eliminated but “we are still not in a bubble zone and that a bust is unlikely”, the study said.