'via Blog this'
This is one IPO which consist of healthcare assets and it will rival First REIT and Parkway Life REIT. Let's see the details.
- Price Range = $0.88 - $0.97
- Yield = 8.46% - 9.10% (It will be 5.98% to 6.60% if there is no distribution wavier for sponsor units)
- Assets Per Unit = $1.134 (Based on maximum price)
- Liabilities Per Unit = $0.212 (Based on maximum price)
- Secured NAV = $0.922 (Based on maximum price)
The catch is that there is a distribution wavier for Sponsor Units which propels its yield to a high of 8.46%. This distribution wavier will cease on 31st March 2014, giving us about 15 months of extra distribution.
Another plus point is that its liabilities does not include any long-term debt. Their short-term debt is minimal. This result in its high secured NAV which is almost 100% of its IPO price.
A few issues to consider for this. It is an Indian Business Trust which brings us back to the days where Indiabulls Properties International Trust is listed. It went downhill since IPO and is trading at a very low price with negative cashflow despite having a sponsor. It has a colourful IPO Prospectus which until now cannot be delivered. Thus, I am not confident with Indian assets.
I will be looking at its final pricing to decide whether to subscribe to this but currently, I am not keen. Maybe we need a success story to tell before we can be more confident.