We have another IPO coming up and it is a Shariah compliant REIT: Sabana REIT.
The REIT will sell about 605.8 million units at $1.00-$1.10 each with a distribution yield of 8.45% for 2011 and 8.48% for 2012 based on the minimum offer price.
Singapore’s Sabana REIT to raise at least $605.8m in IPO. Sabana controls 15 industrial properties in Singapore with an aggregate floor area of about 3.3 million square feet.
Tuesday, 09 November 2010
Tuesday, 09 November 2010
© 2010 - The Edge Singapore
What does it mean to be Shariah compliant?
Shariah prohibits the payment or acceptance of interest fees for loans of money, for specific terms, as well as investing in businesses that provide goods or services considered contrary to its principle. Source: Wikipedia.
So, we can imagine that businesses which deal in alcohol and pork would not be allowed as tenants, for examples. It would be interesting to see how this REIT performs in time. Something different to enrich the REIT landscape in Singapore.