DBS has won a capital market coup by successfully launching Singapore's first S-REIT for CapitaLand. The CapitaMall deal was four times oversubscribed and garnered 39% of its demand from retail investors. It launched at the tight end of the range at S$0.96, a level which equates to a dividend yield of 7.2%, and saw S$235 million $134 million raised subject to the exercise of the greenshoe.
It will be recalled that last November, DBS and UBS Warburg had tried to launch the same S-REIT with a dividend yield of 5.75% but had been forced to pull the deal due to lacklustre demand. The deal was considerably larger then at S$740 million.
This...
