The offering of 580.6 million stapled securities comprises an international placement of 535.7 million stapled securities to investors, including institutional and other investors in Singapore; and an offering of 44.9 million stapled securities to the Singapore public.
Investors subscribing for stapled securities under the public offer will pay the offering price in Singapore dollars of $1.071.
EHT is a US hospitality specialist with an invested sponsor and a portfolio of full service hotels in the US markets. Its initial portfolio comprises 18 primarily freehold hotel properties located in the US, with a total of 5,420 rooms and an aggregate valuation of US$1.27 billion.
All but one of EHT’s hotels are branded by and operated under franchise agreements with the three largest global hotel franchisors – Marriott, Hilton and IHG.
Cornerstone investors including DBS Banks and Gold Pot Developments have entered into subscription agreements to subscribe for an aggregate of 144.9 million stapled securities, representing 16.7% of the total number of stapled securities in issue immediately after the listing.
EHT will distribute 100% of its annual distributable income for the period from the date of listing to the end of 2020, and thereafter, at least 90% of its annual distributable income.
Distributions will be made on a semi-annual basis, for each six-month period ending 30 June and 31 December.
Based on the offering price, this represents an annualised distribution yield of 8.2% for s019 and 8.4% for projection year 2020.
The sponsor of EHT is Urban Commons, LLC, a privately-held real estate investment and development firm that is active across a range of property types with a specific emphasis on hotels.
Urban Commons, founded in 2008 by Howard Wu and Taylor Woods, will hold a 15.2% stake in EHT upon listing.
