Ascendas hospitality vs Far East REIT

Ascendas hospitality vs Far East REIT: Ascendas could see some switching out by investors? Far East Organization is set to offer investors a bite off its assets via the grp's first hospitality trust listing - Far East H-Trust.The listing of the hospitality stapled group, which comprises both Far East H-Reit and Far East H-BT, is expected to raise some $656m (excluding an over-allotment option of about $60m). Notably, each stapled security will be priced in the range of 86c – 93c, translating to a forecast yield of around 6% to 6.5% and a P/B of (1x or 0.92x respectively) Far East H-Trust have garnered strong interest bagging numerous cornerstone investors including names such as Aberdeen, AIA, JF Asset Mgt and NTUC. HSBC note that this is the only pure-play SG hospitality Reit (real estate investment trust). The assets in the trust's portfolio are also on master lease arrangements, providing downside protection to distributions for unitholders. Furthermore, Far East H-Trust also has a committed reputable sponsor who will hold at least 51% of the trust. Asset-wise, the trust is expected to feature a total of 11 SG properties, including 7 hotels and 4 serviced residences. DBS, Goldman Sachs and HSBC have been appointed as joint global coordinators and, together with OCBC, are also joint bookrunners and underwriters for the IPO, which is expected to be priced on Aug 14 and make its debut on Aug 27.