Shipping Trust

First Ship Lease Trust (FSL), which acquires and leases shipping assets, is seeking an SGX-listing that will make it the third and largest business trust on the local bourse by market capitalisation. The trust is promising investors a projected tax-free annualised distribution yield of 8.69 per cent, based on the issue price.

Months ago, I discussed the potential of shipping trust in Singapore. And I think the development is picking up momentum now. There's an article on BT today on why the market for shipping trust is growing. Just coping some stuffs over here to share with you guys ~

1. Shifts in the ship-financing industry worldwide have led ship users to look for different sources of funding.
2. Changes in local regulations - namely the Maritime Finance Incentive (MFI) and Business Trust Act (BTA) - have made Singapore an attractive alternative.

For details, refer to the article. But do note; For growth potential, organic growth can only come from higher market lease rates, unlike in real estate, where assets can be redeveloped to enhance value (which is common in local REITs).

by Str|fe

0 comments

Str|fe
@ www.masterzhuo.blogspot.com

October 2005
November 2005
December 2005
March 2006
April 2006
May 2006
June 2006
July 2006
August 2006
September 2006
October 2006
November 2006
December 2006
January 2007
February 2007
March 2007
April 2007

---