ARA US Hospitality Trust ends flat on debut

U.S. one-dollar currency notes; taken September 2018.U.S. one-dollar currency notes; taken September 2018.

ARA US Hospitality Trust ended its first day of trade on the Singapore Exchange at US$0.88, flat with its offering price, after trading in a range of US$0.865 to US$0.88.

The trust has a portfolio of 38 upscale select-service hotels, totaling 4,950 rooms, located across 21 U.S. states.

As part of the initial public offering, 379.78 million stapled securities were issued, while another 53.75 million were subscribed for by ARA Real Estate Investors 23 and 132.38 million went to cornerstone investors, a filing to SGX Thursday said. The total number of stapled securities after the offering is 565.91 million, it said.

That raised gross proceeds of US$498 million, which has been earmarked toward the repayment of existing loan facilities, the filing said.

“We are delighted to welcome ARA US Hospitality Trust, the first pure-play U.S. upscale select-service hospitality trust to be listed on our mainboard,” Mohamed Nasser Ismail, head of equity capital markets at SGX, said in a statement from the Exchange Thursday.

“As one of Asia’s largest global REIT and property trusts markets, we are excited again to be the first in Asia to offer investors the opportunity to invest in such a U.S. Hospitality Trust listing, allowing them exposure to the world’s largest lodging market,” he added.

Lee Jin Yong, CEO of the trust’s manager, said the support from both institutional and retail investors was encouraging.

“We will diligently focus on organic growth opportunities through active asset management and thoughtfully expand the portfolio through accretive investments,” Lee said in the statement.

ARA US Hospitality Trust’s listing brought the total number of REITs and property trusts listed on SGX to 43, the statement said.


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