The International Stock Exchange (“TISE”) has become home to a wholly owned subsidiary of a Singaporean listed Real Estate Investment Trust (“REIT”), allowing it to access the benefits of the UK REIT regime.
Elite Commercial REIT (“EliteCReit”) is a Singapore-listed REIT established with the investment strategy to invest directly or indirectly in commercial real estate-related assets in the UK. It is the first and only UK-focused REIT listed on the Singapore Exchange.
Now its subsidiary, Elite UK Commercial Holdings Limited (“ECHL”), has listed ordinary shares on TISE in addition to two bonds which are already admitted to TISE’s Official List. It is entering the UK REIT regime to future-proof the overall tax structure of EliteCReit and provide an improved platform for expansion within the UK market.
Carolyn Gelling, Head of Equity Markets at TISE, said: “We’re extremely pleased to welcome ECHL to TISE. It is very rewarding to be part of another ‘first’ and play a role in enabling this Singaporean group’s expansion within the UK market. This demonstrates TISE’s strength as a listing venue providing access to the UK REIT regime, including for international groups who want to develop and grow their presence in the UK real estate market.”
ECHL’s listing of both bonds and ordinary shares on TISE is sponsored by Bedell Channel Islands Limited.
Alasdair Hunter, Partner at Bedell Channel Islands Limited, said: “It has been a pleasure to work with EliteCReit and assist them on their expansion within the UK real estate market through this listing on TISE, which allows ECHL to qualify as a UK REIT. At Bedell we are seeing continued strong demand for REIT listings on TISE and, with our experience on working with EliteCReit and other clients, we are well placed to assist in bringing those to market.”
EliteCReit’s portfolio comprises 155 commercial buildings located across the UK valued at an aggregate of £515.3 million. Of the total portfolio, 58 of the properties were acquired on 9 March 2021 during the REIT’s maiden acquisition.
Joel Cheah, Chief Financial Officer of the Manager of EliteCReit, said: “The technical listing of the ordinary shares of ECHL followed on the heels of two series of bond listings on TISE. The listing process has been smooth due to the unwavering support from TISE and Bedell. The admission on TISE is a required step for ECHL and its subsidiaries to qualify as a UK REIT group and future-proofs the overall tax structure of EliteCReit, positioning the REIT for future growth.”
The tax advisory work of EliteCReit is supported by Grant Thornton in Singapore and the UK.
Matthew Stannard, Director Real Estate Tax at Grant Thornton, said: “We’re delighted to have worked with EliteCReit in executing this innovative and landmark transaction, which positions it as the first Singaporean listed REIT to enjoy the benefits of the UK REIT regime.”