Singapore Property Analyst

Anni Kum

Equity Capital Markets

Singapore media – <a href="https://www.businesstimes.com.sg/companies-markets/elite-commercial-reit-to-lodge-prospectus-next-week" target="_blank" rel="noopener">The Business Times</a> and <a href="https://www.theedgesingapore.com/capital/reits/reit-ipo-uk-properties-launch-next-week" target="_blank" rel="noopener">The Edge</a>, have reported that Elite Commercial Real Estate Investment Trust (“Elite CREIT”) plans to lodge its listing prospectus next week before the Chinese New Year.
Within a one-year period, value of the Portfolio has increased by £37.9 million or 13.4%. The gain in portfolio valuation has significantly outperformed the general UK office market. Hence, greater clarity is needed to understand the basis behind the increase in the portfolio value, when the prospectus is lodged.
The reported yield of 6% to 7% is unlikely to excite investors despite the “bond-like” lease structure of the portfolio.
The small size of Elite CREIT will make it challenging for the manager to scale up the REIT to a decent size. It is also unlikely to attract strong institutional followings. Considering these factors, a higher yield and required return is necessary to compensate investors for the higher risk associated with a smaller REIT that lacks track record.

Singapore media – The Business Times and The Edge, have reported that Elite Commercial Real Estate Investment Trust (“Elite CREIT”) plans to lodge its listing prospectus next week before the Chinese New Year.
Within a one-year period, value of the Portfolio has increased by £37.9 million or 13.4%. The gain in portfolio valuation has significantly outperformed the general UK office market. Hence, greater clarity is needed to understand the basis behind the increase in the portfolio value, when the prospectus is lodged.
The reported yield of 6% to 7% is unlikely to excite investors despite the “bond-like” lease structure of the portfolio.
The small size of Elite CREIT will make it challenging for the manager to scale up the REIT to a decent size. It is also unlikely to attract strong institutional followings. Considering these factors, a higher yield and required return is necessary to compensate investors for the higher risk associated with a smaller REIT that lacks track record.

REIT Discover: Early Thoughts on Elite Commercial Reit IPO

Elite UK REIT

REIT Discover: Early Thoughts on Elite Commercial Reit IPO