By P.R. Venkat
SINGAPORE--Canadian insurer Manulife Financial Corp.'s asset
management arm will start taking orders from investors early next
week for an up to US$450 million Singapore initial public offering
of a clutch of U.S. office properties, people with knowledge of the
process said Sunday.
The IPO of the Manulife Asset Management's real-estate
investment portfolio holdings would target Asian investors hunting
for stable cash flows and higher-yielding assets amid paltry yields
in the bond market.
The IPO, which would be structured as a real-estate investment
trust, would offer rare exposure to the U.S. property market,
according to one of the people.
The company is planning to sell the units at 0.82 Singapore
dollar (US$0.61) a unit, the people said.
The IPO, if successful, will be the biggest such transaction in
Singapore so far this year. Singapore is home to nearly 59
real-estate investment and other trusts, with a combined market
capitalization of close to S$100 billion. Investors are drawn to
their yields, which at about 6% or 7% a year far exceed the 0.25%
offered on 12-month Singapore-dollar deposits.
One of the people said Manulife Asset Management is seeking to
pay 6.3% yield for 2016.
A representative for the company didn't immediately respond to a
request for comment.
Write to P.R. Venkat at venkat.pr@wsj.com
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