Asia’s real estate IPO market is expected to raise approximately $US5 billion ($A6.5 billion) in 2007, according to Thomson Financial.
According to Thomson Financial, 13 real estate IPOs have been earmarked for the year 2007 and are expected to raise a total of $US4.97 billion.
The largest real estate IPO earmarked for 2007 is in Hong Kong, with a plan $US1 billion listing of Country Garden Holdings, which invests in China’s property market.
The second largest IPO is reserved for Dubai’s Emaar Properties and India’s MGF Developments Ltd, which in looking to raise $US700 million through the launch of Emaar-MGF Land.
Altogether, India has three IPO’s plan for 2007 in Emaar-MGF; Omaxe Construction and DLF, which will raise more than $US1 billion.
The most dominant region in 2007 appears to be China, where six companies are seeking to raise $US2.01 billion. Out of the six IPOs, three will be listed in Hong Kong including Country Garden Holdings; Sino-Ocean Real Estate Development and Hong Kong Property.
Hong Kong is also in the running with two companies in Wharf Development (Wharf Holdings) and China Properties Group looking to raise $US1.04 billion.
Australia and Singapore both have one IPO in the pipeline with the $US170 million MacarthurCook Industrial REIT and the $US644.6 million Chinese Estate Holdings.
According to Thomson Financial, the amount of funds earmarked for the real estate market IPO market in 2007 is slightly down when compared to 2006, where 35 IPOs raised $US5.93 billion and in 2005 where 28 IPOs raised $US7.12 billion.
According to Global Property Research, two Japanese IPOs are looking to raised approximately ¥29.9 billion ($A318.73 million) in 2007 in Will Co., Sowa Jisho Co. and Nomura Real Estate Residential Fund Inc.
Recent data from GPR, show the Asian listed property sector reported solid returns in 2006 with a gain of 6.4% in December 2006, taking the 2006 total returns to 30.1%.
The best performing Asian country in 2006 was Singapore (+69.8%) ahead of the Philippines (+48.9%), Hong Kong (+29.9%) and Japan (+25.8%).
The Asian listed property sector outperformed both general equities and bonds in 2006 by 18.5% and 28.1% respectively in 2006.
The Australian LPT sector returned 34.6% in 2006.
Australian Property Journal
IPO Pipelines | ||||||
Asia Pacific (ex Japan) | ||||||
expected 2007 | ||||||
Expected Date | Transaction Status | Name | Nation | Proceeds Amount (US$ mil) | Bookrunner(s) | Exchange Where Issue Will Be Listed |
2007 | MANDATED | Country Garden Holdings | CH | 1,000 | Morgan Stanley (Asia) Ltd UBS Investment Bank | HONGK |
2007 | MANDATED | Emaar-MGF Land Pvt Ltd | IN | 700 | ENAM Financial Consultants JM Morgan Stanley Merrill Lynch Intl (Asia) | |
1Q2007 | ANNOUNCED | Wharf Development Ltd (Wharf Holdings Ltd) | HK | 644.8 | UBS Investment Bank Merrill Lynch Intl (Asia) | |
2007 | MANDATED | Chinese Estates Holdings Ltd | HK | 644.6 | Citigroup Deutsche Bank Asia | SINGP |
14/02/2007 | MANDATED | China Properties Group | HK | 400 | Merrill Lynch Intl (Asia) | HONGK |
2007 | MANDATED | Sino-Ocean Real Estate Development Co Ltd | CH | 400 | Goldman Sachs (Asia) Morgan Stanley (Asia) Ltd | HONGK |
3Q2007 | MANDATED | KWG Property | CH | 300 | Morgan Stanley (Asia) Ltd | |
3Q2007 | MANDATED | Guangzhou Corporate Worth Real Estate | CH | 250 | JP Morgan Investment | |
3Q2007 | MANDATED | Aoyuan Group | CH | 200 | Credit Suisse | |
1Q2007 | MANDATED | Omaxe Construction Ltd | IN | 200 | Citigroup DSP Merrill Lynch Ltd JM Morgan Stanley UBS AG | |
2007 | MANDATED | MacarthurCook Industrial REIT | AU | 170 | HSBC Investment Bank Asia Ltd UBS (East Asia) Ltd | |
13/02/2007 | MANDATED | Hong Long Property | CH | 66.4 | China Everbright Secs (HK) | HONGK |
1Q2007 | MANDATED | DLF Ltd | IN | Citigroup Lehman Brothers Deutsche Bank Asia UBS Investment Bank ICICI Securities & Finance Co | ||
Source: Thomson Financial | ||||||
