Month: December 2007
HWT – BT
Hyflux Water Trust secures 20-year China concession
HYFLUX Water Trust’s (HWT) wholly owned subsidiary, Hyflux NewSpring (Yangzhou) Co Ltd, has been granted an exclusive 20-year concession by the government of Jiangsu Province to build, own, operate and transfer an expansion plant next to HWT’s existing waste-water treatment plant in the Yangzhou Chemical Industrial Park.
Upon expiry of the concession agreement, HWT has a first right to negotiate for an extension of the concession term, Hyflux Water Trust Management, the trustee-manager of HWT, said in a statement yesterday.
With a design capacity of 20,000 cu m/day, and an estimated project cost of 50 million yuan (S$9.9 million), the expansion plant is HWT’s second plant in the Yangzhou Chemical Industrial Park – the first being the existing waste-water treatment plant, which was acquired by HWT as part of its initial portfolio at the time of its recent listing.
The combined design capacity of the two plants will be 40,000 cu m/day.
The expansion plant is required to meet the growing industrial demand for waste-water treatment in the concession area. Construction of the expansion plant is expected to begin in the second quarter of 2008. Operation is expected to commence in mid-2009, with full capacity utilisation by 2011.
The Yangzhou expansion plant will contribute to the growth of the HWT portfolio. This is in addition to the expected organic expansion of the initial portfolio, and future acquisitions of assets from parent group Hyflux Ltd, the trust’s manager said.
The expansion plant will be funded by bank credit facilities available to HWT, and is expected to be yield-accretive. It is, however, not expected to have a material financial impact on HWT for the financial year ending December 2008.
Cambridge – SGX
CIT TO ACQUIRE 21B SENOKO LOOP FOR S$14.7 MILLION
1. Cambridge Industrial Trust Management Limited (the “Manager”), the Manager of Cambridge Industrial Trust (“CIT”), has identified 21B Senoko Loop (the “Property”) to be acquired by CIT at a purchase price of S$14,670,000. (known as the “Acquisition”).
2. In connection with the Acquisition, RBC Dexia Trust Services Singapore Limited, in its capacity as trustee of CIT (the “Trustee”), has entered into a conditional put and call option agreement (the “Option Agreement”) with Tellus Marine Engineering Pte Ltd (“Tellus”), to acquire the Property.
3. The Acquisition is expected to be financed by debt or alternative funding sources in line with the Manager’s capital management strategy in optimizing the funding of the Trust. The above Property will be accretive to CIT’s distributable income.
More information regarding the information of property and impact on unit can be found at the link provided below
Source : SGX
Mapletree – SGX
ANNOUNCEMENT
PROPOSED RENOUNCEABLE RIGHTS ISSUE OF NEW UNITS
Introduction
Indicative Terms of the Rights Issue
The following indicative terms are based on the Manager’s assessment of current market conditions and MapletreeLog’s funding requirements and are subject to change. The Manager intends to carry out the Rights Issue to raise estimated gross proceeds of between S$400.0 million and S$500.0 million. Based on current market conditions, the Manager expects the price of the Rights Units (the “Rights Issue Price”) to correspond to a discount of no more than 20.0% to the theoretical ex-rights price (“TERP”). The TERP is calculated as follows:
TERP = (Market capitalisation of MapletreeLog prior to the Rights Issue(1) + gross proceeds from the Rights Issue)/Units outstanding after the Rights Issue
Note:
(1) Such market capitalisation will be calculated based on the volume weighted average price for a Unit for all trades on the SGX-ST for a period of time prior to and including the last day of cum rights trading in relation to the Rights Issue. The period will be determined and disclosed by the Manager in the notification to Unitholders stating the time and date on which the transfer books and register of Unitholders will be closed to determine the provisional allotments of eligible Unitholders to the Rights Issue (the “Notice of Books Closure Date”).
The Unitholders’ Circular will contain further details regarding the Rights Issue, and will reflect market conditions and MapletreeLog’s funding requirements prevailing at the time of issue of the Unitholders’ Circular.
The rights ratio which will set out Unitholders’ provisional allotment of new Units under the Rights Issue will be disclosed in the Notice of Books Closure Date. The Rights Issue Price will be determined closer to the commencement of the Rights Issue, and will be disclosed in the offer information statement in relation to the Rights Issue to be lodged with the Monetary Authority of Singapore and issued to Unitholders (the “Offer Information Statement”).
The Rights Units represented by the provisional allotments of (i) eligible Unitholders who decline, do not accept, and elect not to renounce or trade their provisional allotments of Rights Units under the Rights Issue (during the provisional allotment trading period prescribed by the SGX-ST) and/or (ii) ineligible Unitholders, will be issued to satisfy excess Rights Units applications as the Manager may, in its discretion, deem fit. In the allotment of excess Rights Units, preference will be given to rounding of odd lots, followed by allotment to Unitholders who are neither substantial Unitholders nor directors of the Manager. Substantial Unitholders (including Mapletree Investments Pte Ltd (“MIPL”) and its subsidiaries, such as the Manager) and directors of the Manager will rank last in priority.
The Rights Issue is subject to, inter alia, the receipt of in-principle approval from the SGX-ST for the Rights Issue, the approval of Unitholders at the EGM for the Rights Issue, the lodgement of the Offer Information Statement and prevailing market conditions at the relevant time.
Rationale for the Rights Issue
In view of current market conditions, the Manager believes that a rights issue is the most appropriate method of raising equity.
The Rights Issue will provide financial flexibility to enable MapletreeLog to finance its strong acquisition pipeline and pursue its objective of delivering total returns in the form of distribution yield and capital growth to Unitholders. The Rights Issue will also strengthen MapletreeLog’s balance sheet and capital structure.
Use of Proceeds
The proceeds of the Rights Issue will be used to, inter alia, partly or fully finance the acquisition of certain properties which the Manager is acquiring and partly or fully refinance certain loan facilities drawn down for the purpose of the acquisition of certain properties, with the balance of the proceeds to be used for other general corporate and working capital purposes.
Undertaking by MIPL
To demonstrate its support for MapletreeLog, MIPL, which owns an aggregate interest of approximately 30.2% in MapletreeLog through its wholly-owned subsidiaries as at the date of this announcement, has provided an irrevocable undertaking (the “MIPL Undertaking”) that:
(i) it will, directly and/or through one or more of its wholly-owned subsidiaries, take up the entire provisional allocation of Rights Units of MIPL and its wholly-owned unitholding subsidiaries under the Rights Issue; and
(ii) it will, directly and/or through one or more of its wholly-owned subsidiaries, make excess application(s) for any Rights Units not subscribed for at the close of the Rights Issue after satisfaction of all other applications and excess applications (if any) for the Rights Units (the “MIPL Excess Application”).
On 21 December 2007, the Securities Industry Council granted, in connection with the MIPL Undertaking, a waiver of the requirement by MIPL to make a mandatory offer for Units under the Singapore Code of Take-over and Mergers as a result of the MIPL Excess Application subject to, inter alia, the approval by independent Unitholders at general meeting of a resolution to waive their rights to receive a general offer from MIPL.
The MIPL Undertaking will enhance the objective of a successful Rights Issue.
Approval from SGX-ST
The issue of the Unitholders’ Circular is subject to the in-principle approval of the SGX-ST for the Rights Issue. The Manager will announce the receipt of the approval of the SGX-ST for the Rights Issue once this has been received.
Source: SGX
MIREIT – SGX
SGX-ST ANNOUNCEMENT
APPLICATION FOR THE LISTING OF NEW UNITS
MacarthurCook Investment Managers (Asia) Limited, as manager of MacarthurCook Industrial REIT (“MI-REIT”, and manager of MI-REIT, the “Manager”), wishes to announce that under the proposed equity fund raising described in MI-REIT’s announcement dated 21 December 2007 (the “Equity Fund Raising”), it currently intends to raise gross proceeds of indicatively up to S$200.0 million based on current market conditions and funding requirements. This figure is subject to change at the Manager’s absolute discretion.
The issue price of the new units in MI-REIT (the “New Units”) under the Equity Fund Raising will be determined after an accelerated book building process and will be announced by the Manager when fixed. The issue price of New Units is expected to be at no more than a 10.0% discount to the volume weighted average price for trades of units in MI-REIT (“Units”) done on Singapore ExchangeSecurities Trading Limited (the “SGX-ST”) for the full market day on which the purchase agreement in relation to the Equity Fund Raising is signed. If the trading of the Units is not available for a full market day, the volume weighted average price will be based on the trades done on the preceding market day up to the time the purchase agreement is signed.
Source : SGX
REIT – BT
Millennium & Copthorne Hotels may launch Reit
(KUALA LUMPUR) Millennium & Copthorne Hotels plc (M&C), a London-listed firm which operates more than 112 hotels in over 18 countries, may launch a billion-ringgit property trust in Malaysia comprising local and foreign properties, says a report in Malaysia’s Business Times.
M&C may also consider launching the Reit in Singapore or other Asian countries but this will depend on opportunities in the markets, chief operating officer Michael Sengol said.
‘A listing in Malaysia is also possible. Options are open and it’s a long-term plan. There is nothing concrete yet,’ Mr Sengol told Business Times in an interview in Kuala Lumpur recently.
M&C, a unit of Singapore’s City Developments Ltd (CDL), which is part of billionaire Kwek Leng Beng’s Hong Leong group, is one of the largest owned and managed hotel groups in the world.
In Malaysia, it owns the newly refurbished Grand Millennium Hotel (formerly The Regent KL), and Grand Millennium Penang.
According to Mr Sengol, the hotel in Penang may be redeveloped or refurbished in the near future to cater to the lifestyle of travellers.
Next month, M&C will launch Millennium Residence, a 57-storey five-star serviced condominium in Kuala Lumpur, its first in Malaysia.
‘We have not stopped venturing here. We are still exploring. Malaysia now contributes a small percentage to group revenue. With further expansions here, we hope contribution would be significant in the near future,’ Mr Sengol said.
Meanwhile, M&C is planning to develop its no-frills hotel operating business in Malaysia and Asia through Tune Hospitality Investments Dubai, a US$50 million joint-venture property fund.
Hong Kong-listed City e-Solutions (CES) Ltd, a unit of CDL, and Istithmar PSJC, the investment arm of state-owned Dubai World, will each have a 40 per cent stake in the venture. The rest will be held by Tune Hotels.com, Malaysia’s first no-frills hotel operator. The fund will be used to develop and own a portfolio of 30 ‘no-frills’ hotels in Malaysia, Indonesia, Thailand, Singapore and the Philippines.