Report
EUR 86.33
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The initial portfolio will comprise of 97 commercial buildings located across the UK with a total net internal area of approximately 2.6m sqft and total site area of approximately 47 hectares. ECR is sponsored by Elite Partners, Ho Lee Group and Sunway Berhad.
Most of the assets are leased to the UK government for a period of ten years which provides very high stability to the portfolio. However, the rental renewal is done only once every five years with the next one only due in 2023. Thus, the portfolio lacks consistent growth.
Moreover, the assets themselves are small and on average are more than two decades old. Furthermore, they aren’t exactly Grade A assets and might not even qualify for being Grade B office assets.
Given the small size of the REIT versus its Singapore listed peers, we would expect it to trade at a discount to its listed peers.
Elite Commercial REIT IPO - Stable portfolio but small and old assets
Elite Commercial REIT plans to raise up to US$170m in its Singapore listing.The initial portfolio will comprise of 97 commercial buildings located across the UK with a total net internal area of approximately 2.6m sqft and total site area of approximately 47 hectares. ECR is sponsored by Elite Partners, Ho Lee Group and Sunway Berhad.
Most of the assets are leased to the UK government for a period of ten years which provides very high stability to the portfolio. However, the rental renewal is done only once every five years with the next one only due in 2023. Thus, the portfolio lacks consistent growth.
Moreover, the assets themselves are small and on average are more than two decades old. Furthermore, they aren’t exactly Grade A assets and might not even qualify for being Grade B office assets.
Given the small size of the REIT versus its Singapore listed peers, we would expect it to trade at a discount to its listed peers.
Underlying
ELITE COMMERCIAL REIT
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Sumeet Singh
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