Cambridge : SGX
Cambridge Industrial Trust Management Limited issues Circular to Unitholders relating to, among other things, the acquisition of six Target Properties by Cambridge Industrial Trust
• CIT to issue New Units for a private placement to raise up to S$193.9 million to fund the acquisition of the Target Properties
• Property portfolio expected to increase 60.7% in value to S$879.8 million with 40 properties as compared to S$547.4 million with 27 properties since Initial Public Offering (“IPO”)
• Forecast Period 2007 DPU (annualised) enhanced by 9.4%1 vs IPO 2007 Projection DPU of 5.12 cents
• Projection Year 2008 DPU at 5.799 cents, an increase of 3.5% over Forecast Period 2007 DPU2
• CIT’s Aggregate Leverage to be reduced from 48.2%3 to 38.1%3
1 Assumes completion of the Equity Fund Raising, completion of the acquisitions of the Target Properties and the Natural Cool Building and a private placement issue price of S$0.80.
2 Assumes completion of the Equity Fund Raising, completion of the acquisitions of the Target Properties and the Natural Cool Building and a private placement issue price of S$0.80.
3 Estimated as at 31 August 2007 based on CIT’s existing portfolio of 33 properties.
3 Computed based on forecast net borrowings and total assts of CIT as at 31 October 2007, assuming the completion of the Equity Fund Raising, and the acquisition of the six Target Properties and Natural Cool Building, bringing CIT’s portfolio from 33 to 40 properties.
Extracts of Press Release
The increased portfolio size is expected to provide CIT with a stronger platform for future acquisition growth. With the increased number of properties since IPO, CIT is pleased to announce that its DPU is expected to increase by 9.4%, from CIT’s IPO 2007 Projection DPU (of 5.12 cents, obtained from CIT’s prospectus dated 14 July 2006) for the CIT’s initial portfolio, to 5.604 cents (on an annualised basis) for the forecast period from 18 September 2007 to 31 December 2007 (the “Forecast Period 2007”) for the Enlarged Portfolio. Based on CIT’s Enlarged Portfolio, the projected DPU for the financial year ending 31 December 2008 is approximately 5.799 cents, an increase of 3.5% over the forecast DPU (annualised) for the Forecast Period 2007.
Mr Wilson Ang, Chief Executive Officer of CITM, said, “The completion of these properties will bring our property portfolio under management from S$689.4 million to S$879.8 million and increase total Unitholders’ distributions. The Equity Fund Raising will reduce our gearing ratio from 48.2% to 38.1% and give us more acquisition capacity to grow. After our planned S$193.9 million fund raising, CIT’s distribution per unit to Unitholders will be enhanced by 9.4% for 2007 compared to our IPO projections and we expect further growth of 3.5% in 2008. Based on our Projection Year 2008 DPU of 5.799 cents and an illustrative issue price of S$0.80, CIT offers investors an attractive yield of 7.2%.”
Source : SGX