LOGISTICS firm Freight Links Express is set to raise as much as $696.1 million from Singapore's first Shari'-compliant real estate investment trust (Reit), according to a preliminary prospectus filed on Tuesday.

The Sabana Shari' Compliant Reit - launched by Sabana Investment Properties (SIP), which is 51 per cent owned by Freight Links Express - will offer more than 600 million units between $1.00 and $1.10 apiece.

And based on the minimum offer price, Reit manager Sabana Real Estate Investment Management has forecast a distribution yield of about 8.45 per cent for next year and 8.48 per cent for 2012.

Sabana operates 15 industrial properties across Singapore, comprising an aggregate gross floor area of about 3.2 million sq ft.

They include high-tech industrial facilities in central areas like New Tech Park in Lorong Chuan, another in Tai Seng Drive and chemical warehouses in Penjuru Lane, Gul Drive and Tuas in the west.

Such properties boast leading tenant names in the property sector including City Developments Limited, Ho Bee Investment Limited, the initial public offering (IPO) sponsor Freight Links express, and other sub-tenants from a diverse range of businesses.

Property float looks to raise $700m