The IPO of Daiwa House Logistics Trust has closed with its placement tranche 4.9 times subscribed, whereas the public tranche of 25 million units was 9.5 times subscribed.
A total of 244.4 million units were sold at 80 cents each.
At this price, the REIT has an expected distribution yield of 6.5% for FY2022.
In addition, there’s a group of cornerstone investors that collectively took up more than 336 millon units, or nearly half of the total unit base.
These investors include Bangkok Life Assurance Public Co; Credit Suisse; DBS; DWS Investments Australia; Kuang Ming Investments; Nomura Singapore; Hazelview Securities and Metro ARC Investments.
“We believe that this is testament to the attractiveness of our portfolio of high-quality modern logistics properties as well as the strength of our sponsor,” says Takeshi Fujita, CEO of the REIT’s manager, referring to Daiwa House Industry Co, one of the largest construction and real estate development companies in Japan.
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“Our Sponsor has announced plans to pursue development opportunities more aggressively in the logistics asset class, with the Southeast Asian region being a key area of focus given the demand for overseas logistics and manufacturing bases, particularly from Japanese-based tenants,” he adds.
At IPO, the REIT’s portfolio of 14 logistic properties is appraised at some ¥80.57 billion ($952.9 million) and an aggregate net lettable area of around 423,920 sq m.
The portfolio was acquired from the sponsor at $840.5 million, equivalent to an 11.8% discount to the appraised value.
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The portfolio has an occupancy rate of 96.3% and an aggregate weighted average lease expiry of 7.2 years.
Trading of DHLT will commence at 2pm on Nov 26.
This IPO is managed by DBS.