MI-REIT – SGX

MACARTHURCOOK INDUSTRIAL REIT ACQUIRES LOGISTICS PROPERTY FOR S$18.3 MILLION

– Yield-accretive acquisition
– Increases DPU by 2.7% to 7.61 cents per unit for FY 08 and 3.0% to 7.82 cents per unit for FY 09

Singapore, 30 August 2007 – MacarthurCook Investment Managers (Asia) Limited (“MCKIM Asia”), the Manager of SGX-ST Listed MacarthurCook Industrial REIT ( “MIREIT”), is pleased to announce that through HSBC Institutional Trust Services (Singapore) Limited (the Trustee”), MI-REIT has signed a conditional put and call option agreement (the “Agreement” ) to acquire the property at 7 Clementi Loop, Singapore, for a total consideration of S$18.3 million.

The vendor of 7 Clementi Loop, Nova Engineering and Logistics Pte Ltd (“NEL”), will lease back the property for five years, with the option to extend for another five years. The lease will commence following the completion of certain refurbishment works to the property, which are expected to be completed by 30 November 2007.

Based on the scheduled completion date, the acquisition is accretive to MI-REIT’s distribution per unit (“DPU”). The pro forma financial effect of the acquisition on the DPU for the financial year ended 31 March 2008 (“FY2008”) is an additional 0.20¹ Singapore cents per unit, representing an increase of 2.7% from the forecasted FY2008 DPU of 7.41 Singapore cents per unit. The pro forma financial effect of the acquisition on the forecasted FY2009 DPU of 7.59 Singapore cents per unit for the financial year ended 31 March 2009 (“FY2009”) is an additional 0.231 Singapore cents per unit, representing an increase of 3.0%.

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FUNDING
The acquisition of 7 Clementi Loop is expected to be completed by 30 November 2007. The Manager intends to finance the acquisition wholly by debt but may consider alternative funding sources in line with its capital management strategy to optimize the funding of MIREIT. Assuming 100% debt financing and that no other acquisitions occur between now and settlement of the Property, the acquisition will increase MI-REIT’s gearing level from its current level of 8.6% to 13.7%⁵.

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¹ On an annualized basis. Assuming MI-REIT has purchased, held and operated the properties for the financial year ended 31 March 2008 (“FY2008”) and that the acquisition is 100% debt-funded.
⁵ This excludes any debt commitment for the recently announced acquisition of Plot 4A International Business Park, which is due for completion in December 2009.

Source : SGX