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Summary
- Solidbuild Group executive chairman Lim Chap Huat has teamed up with Blackstone Real Estate to privatise and delist SB REIT at S$0.55 in cash per unit
- Clay Holdings III Limited, which is the newly integrated unit formed for trust scheme purposes, is the offerer of the deal
Singapore-based property company Solidbuild Group Holdings Limited’s executive chairman and co-founder Lim Chap Huat has teamed up with Blackstone Real Estate in a bid to privatise and delist Soilbuild Business Space REIT (SB REIT) at $0.55 in cash per unit.
In a statement, Soilbuild Reit said the proposed privatisation and delisting will be affected by way of a trust scheme. Soilbuild Reit has been sponsored by Soilbuild Group.
Clay Holdings III Limited, which is the newly integrated unit formed for the trust scheme, is the offeror. Clay Holdings III is owned by Clay Holdings II Limited, which is mainly owned by Huat. Clay Holdings I Limited is a firm formed by funds managed by partners of Blackstone Real Estate. The trust scheme is subject to the court and SB unitholders’ consent and customary conditions.
The scheme represents a premium of roughly 34.5 per cent, 34.8 per cent, 53.2 per cent and 29.1 per cent over the volume weighted average price (VWAP) per SB unit for the 1-month, 3-month, 6-month and 12-month period up to 31 August, respectively.
It also suggests a price to adjusted net asset value (NAV) multiple of 0.98 times to 1.00 times, which beats SB REIT’s historical 1-year, 3-year and 5-year average NAV multiples of 0.78, 0.91 and 0.92 times, respectively.
Chong Kie Cheong, the chairman at SB Manager, said in a press release: “Notwithstanding the board and management team’s efforts to maximise value for unitholders over the years, the unit price has inferred a high yield and was further squeezed by the COVID-19 pandemic.”
“After mulling over different options amid the prevailing uncertainty of a global recovery and the merits of this proposed Trust Scheme, we think it embodies a credible offer in the face of challenging market conditions. We would like to present it to SB Unitholders for their consideration,” he added.
“We think that this option by Blackstone offers the best alternative for SB’s minority Unitholders among all the offers received. We believe Blackstone’s proposal is the most credible one and offers the greatest deal certainty in terms of timing and execution. It is backed by Blackstone’s strong track record of successful privatisations as well as the opportunity to place the assets under the stewardship of one of the most qualified real estate backers and operators in the world,” Lim said.
