Delisting of Soilbuild REIT

Delisting of Soilbuild REIT

The privatisation offer of Soilbuild Business Space REIT has been in the talks for some time. Investors should know this is coming or has already came. At this point of writing, Soilbuild Business Space REIT has already been delisted.

Soilbuild Business Space REIT published the announcement on 12th April and delisting happened quickly at 9am on 14th April 2021.

I used to own Soilbuild Business Space REIT in my stock portfolio. However, I divested it in November 2017 at a loss of 11%. Including dividends, I have made a gain of 9%.

If you had held Soilbuild Business Space REIT until its delisting, you would have received S$0.53806 per unit in cash.

The default of rental by 2 tenants (72 Loyang Way and NK Ingredients Pte Ltd) has kept me awake at night. I am glad that I have sold it back then. As you can see, the share price has not appreciate over the years.

Soilbuild Business Space REIT Share Price

Soilbuild Group’s Lim Family and Blackstone

Soilbuild Group’s Lim Family and Blackstone completed the acquisition of Soilbuild Business Space REIT.

With the completion of the Trust Scheme, all Soilbuild Business Space units are now owned by the Offeror, a newly incorporated entity formed for the purpose of the Trust Scheme, which is in turn owned by Clay Holdings II Limited (“Offeror HoldCo”).

Offeror HoldCo is owned by Mr. Lim Chap Huat, Executive Chairman and Co-founder of Soilbuild Group Holdings Ltd., and Clay Holdings I Limited, an entity established by funds managed by affiliates of Blackstone Real Estate.

Lesson Learnt

A good quality REIT should see its share price increase and able to increase its Distribution Per Unit year on year.

If we realised that the fundamentals have deteriorated, we should not hesitate to bite the bullet and sell it off to preserve as much capital as possible. We can then reinvest our capital elsewhere and we should make back our money over time.

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