Manulife US Real Estate Investment Trust (REIT), a REIT under the Canada-based Manulife group, is successfully listed on the Singapore Stock Exchange (SGX) today (20th May 2016). The offering size is US$470 million pre-over allotment, which is the first Initial Public Offering (IPO) on the Mainboard of SGX in 2016 and the largest IPO in Singapore since 2015. CICC acted as a Joint Bookrunner and Underwriter. 

Manulife US REIT is the first pure-play US office REIT listed in Asia, denominated in US dollar. The IPO Portfolio comprises three freehold, Class A or Trophy quality office properties which are located across prime areas of key US cities. It has an aggregate net lettable area of approximately 1.8 million sq ft, an occupancy rate of 96.5% as at 31 December 2015, and a total valuation amounting to US$800 million. The projected distribution yield is 6.6% for year 2016 and 7.1% for year 2017.

The Sponsor of the REIT, Manulife group, is a leading financial corporation in the world with more than US$670 billion in AUM and is multi-listed on the Toronto Stock Exchange, the New York Exchange, the Hong Kong Stock Exchange and the Philippines Stock Exchange with a market capitalization of US$29 billion. The real estate subsidiary of Manulife group is a global leading real estate management company with more than US$15 billion in AUM. It also possesses strong acquisition capabilities, demonstrated by its acquisition track record of 85 properties worth US$6.2 billion since 2010. The Property Manager of the REIT is John Hancock, an experienced property manager in the US that employs over 200 real estate professionals managing 164 buildings with 27.2 million square feet of space. 

The IPO road of Manulife US REIT was not without setbacks. The REIT planned to get listed on the SGX in July 2015 but had to postpone the plan due to market volatility at that time. In early 2016 the REIT re-launched the IPO and invited CICC to join as a Joint Bookrunner and Underwriter. After CICC joined, it produced a high-quality IPO pre-deal research report within a short timeframe. Meanwhile, CICC, through its entire sales network, conducted in-depth conversations with investors to assist the latter in understanding the Singapore capital market and investment value of the REIT. CICC successfully brought in and locked a number of high-quality investors and played a vital role in securing Chinese investors where CICC contributed almost all of the demand from Chinese investors and ensured the successful listing of the REIT.

CICC is the only Chinese investment bank that has IPO underwriting experience related to investment trust product in Singapore or has acted as a Bookrunner and Underwriter for an IPO in Singapore capital market since 2013. The successful listing of Manulife US REIT is a landmark of CICC in overseas capital markets especially in Singapore and Southeast Asia.