SPH mulls over setting up real estate investment trust

It's eyeing to be listed on SGX main board.

According to Nomura, Singapore Press Holdings has announced that the newspaper\media group is “currently exploring” the establishment of a real estate investment trust (REIT) to be listed on the main board of the Singapore Exchange.

While the group said the properties of the portfolio of the REIT are still under review, the group currently has just two shopping malls under its holdings which are in operation, the Paragon retail mall and commercial offices (100% owned), and The Clementi Mall (60% owned).

Here's more from Nomura:

The third mall, Seletar Mall (70% owned), is currently under development, with completion targeted for end-2014.

Management said the establishment and listing of the REIT remains subject to market conditions, the relevant regulatory and other approvals and the execution of definitive agreements by the relevant parties.

In FY12, the group’s property division accounted for 27% of group EBIT of SGD441.7mn, and 56% or SGD2.27bn of total group assets of SGD4.06bn.

Besides the two shopping malls, and the Seletar retail development, the other significant property asset is the group’s headquarter building called News Centre at 1000 Toa Payoh North (site is zoned industrial).

The group also owns four GDBs (good class bungalows), three at Nassim Road and one at Yarwood Avenue. In a recent valuation report, the group secured a total valuation of SGD3.53bn for the three retail/commercial assets, with the Paragon being valued at SGD2.43bn.