Japan’s Croesus Retail Trust (IPO)

Upcoming IPO: Newswires say Japan’s Croesus Retail Trust, which has Marubeni Corp and Daiwa House Industry as strategic partners, is seeking to raise ~ $800m through an IPO. The trust, which owns shopping malls in Tokyo and Osaka, Tuesday began testing investor appetite for the listing with an aim to list on SGX by the end of Nov. The IPO, if successful, will be the first Japanese company focused on retail property to list in Singapore, and second Japanese company after Saizen REIT which listed its residential properties in a 2007 listing that raised ~$197m. Croesus, which takes the name of an ancient king who is synonymous to great wealth, is also in talks with cornerstone investors for potential investment prior to the IPO. The trust is seeking to offer a yield in the high 7.0% range for FY13 and in the low 8.0% for the following fiscal year. Citi and DBS are joint global co-ordinators.