The Government of Singapore Investment Corporation (GIC) is considering listing part of its property portfolio in an initial public offering valued at up to $1 billion, according to the Financial Times.
The IPO is expected to focus on GIC Real Estate’s industrial holdings, including its assets in Japan and China, which were acquired from Denver-based industrial developer and fund manager ProLogis in 2009 for $1.3 billion.
GIC is said to be in talks with investment bankers, but a final decision could be held up until “regional market volatility” declines, the report said.
The $300 billion sovereign wealth fund has been an active participant in deals, and in its 2009 report said real estate accounted for 12 percent of its assets, including properties such as the Franklin Centre in Chicago, Sydney’s the Queen Victoria building and the Bluewater shopping centre in Kent, England.
The IPO deal would be the biggest offering in Singapore since REIT CapitaMalls Asia’s $2 billion capital raise in late 2009. The IPO would allow GIC – the world’s fourth largest sovereign fund – to raise capital for future investments.
A person familiar with the matter told the FT the IPO would likely aim to raise close to $500 million – as opposed to $1 billion – but that a higher figure could be reached later depending on market conditions.
The FT also said Citigroup and JPMorgan were thought to be “frontrunners” for the mandate to run the IPO.