Month: September 2007
AllCo – BT
Allco’s new Japan buys to be yield- accretive straightaway
ALLCO Reit is buying three freehold properties in Japan for just over $153 million, which will be immediately yield-accretive to distribution per unit, it said yesterday.
The Galleria Otemae Building, ACO Azabu Aco Building and Ebara Techno-Service Headquarters Building are commercial developments in prominent locations in Osaka and Tokyo.
The buildings have a total net lettable area of 17,078 square metres and a weighted yield of 4.68 per cent for the first 12 months.
Allco said the purchase price is a 1.6 per cent discount to valuation and the deal is expected to be completed by Sept 26.
Allco will then own four commercial property assets in Japan, representing 16.4 per cent of its total property investments. The Reit’s portfolio will be worth more than $1.45 billion, with 42 per cent in Singapore properties and about 41 per cent in Australian properties.
The Galleria building in Osaka has 12 levels of office space and basement retail space. The Aco building in Tokyo has three levels of office space plus office/studio space. The Ebara building in Tokyo has five levels of office space.
The acquisitions will be funded by debt, with the weighted average cost of funding expected to be 2.09 per cent. Allco’s leverage will rise from 25.1 per cent to 33.5 per cent, which is well within its gearing limit of 60 per cent.
PST – BT
PST’s two new vessels to boost capacity 61% in ’09
PACIFIC Shipping Trust (PST) said yesterday that its proposed US$136.2 million acquisition of two new vessels will significantly raise its revenue and total fleet capacity in 2009.
Giving more details about the acquisition in a filing to the Singapore Exchange, PST (Singapore’s first publicly listed business trust) said revenue will increase by 54 per cent to about US$53 million per annum and is expected to be yield accretive once the ships are in operation. PST’s fleet capacity will increase by 61 per cent to 22,364 TEU (20ft containers) from 13,864 TEU previously.
The acquisition was first announced in May. The 4,250 TEU vessels cost approximately US$68.1 million each and are chartered to Chilean operator Compania SudAmericana de Vapores (CSAV), the largest liner shipping company in South America. The two ships are being constructed by Dalian Shipbuilding Industry Co in China. They are scheduled for delivery in November and December 2008.
The acquisition is PST’s first since it went public in May 2006.
After the acquisition, the total number of vessels under its portfolio will increase from eight to 10 and trust expenses per vessel could potentially be lower due to greater economies of scale, PST said.
The new vessels will be chartered to CSAV for US$26,000 per day for the first two years and US$25,500 per day for the remaining three years.
AllCo – SGX
ALLCO REIT TO ACQUIRE AN ADDITIONAL THREE PROPERTIES IN JAPAN
Key Highlights
Acquisition of two high quality commercial properties in Tokyo and one in Osaka
Increased presence in Asia
Immediately accretive to Allco REIT’s distribution per unit
Singapore, 14 September 2007 – Allco Commercial Real Estate Investment Trust (“Allco
REIT”) (SGX:ALLC) today announced that it will acquire a 100% interest in three properties in Japan (collectively the “Properties”) for a total purchase price of ¥11.65 billion1 (S$153.05 million)2 at a discount to independent valuation.
Mr Nicholas McGrath, Chief Executive Officer and Managing Director of Allco (Singapore) Limited, manager of Allco REIT, said, “These acquisitions are consistent with our investment strategy of acquiring well-located, yield accretive assets in our target markets.”
Japanese property assets will represent 16.4% of Allco REIT’s total property assets upon completion4. The Properties will improve the quality and diversification of Allco REIT’s income.
The acquisitions are in line with Allco REIT’s regional growth strategy and continue to diversify its portfolio of assets within Asia.
“We are particularly pleased to be entering the Tokyo market and increasing our exposure to the commercial property market in Osaka. It is expected that these markets will continue to benefit from increased rentals and capital appreciation.”
The acquisitions of the Properties will be funded entirely by debt. The weighted average cost of debt funding for the acquisition of the Properties will be 2.09% and will be fixed for five years.
Following completion of the acquisitions, Allco REIT’s leverage (calculated as gross borrowings plus deferred payments divided by total assets) is expected to increase from 25.1% to approximately 33.5%, which is within the aggregate leverage limit as set out in the guidelines for real estate investment trusts in Appendix 2 of the Code on Collective Investment Schemes issued by the Monetary Authority of Singapore (“Property Funds Guidelines”). Allco REIT has an investment grade credit rating from Moody’s Investor Services Inc. which, under the Property Funds Guidelines, permits gearing of up to 60.0%.
“Debt continues to be readily accessible for Allco REIT, with lenders supportive of Allco REIT’s strategy. We have seen a reduction in Yen-denominated debt costs since our previous Japanese acquisition a month ago in Osaka.” Mr McGrath said.
1 References to purchase consideration in this release exclude expenses associated with the acquisitions and consumption tax.
2 The exchange rate used in this release is S$1.00:¥76.1198.
4 Represented by the aggregate appraised value as a percentage of the sum of total property investments held and valued as at 30 June 2007, the aggregate appraised value and the valuation of Cosmo Plaza as at 30 May 2007.
Source : SGX
PST – SGX
PACIFIC SHIPPING TRUST’S US$136 MILLION ACQUISITION TO RAISE REVENUE BY 54% IN 2009
• Acquisition to diversify revenue base and is expected to beyield accretive
SINGAPORE, 14 September 2007 – Pacific Shipping Trust (PST)’s US$136.2 million (S$207 million) proposed acquisition of two new vessels will significantly raise its revenue and total fleet capacity in 2009.
In an announcement to the Stock Exchange today, PST, Singapore’s first publicly-listed business trust, gave more details on the proposed acquisition which was first announced on May 4, 2007.
It said the 4,250 TEU vessels to be acquired from Pacific International Lines (Private) Limited (PIL) and chartered to the Chilean Operator, Compania SudAmericana de Vapores SA (CSAV), the largest liner shipping company in South America, will increase revenue by 54% to about US$53 million per annum and is expected to be yield accretive once they are delivered and in operation.
PST’s fleet capacity will also grow by 61% to 22,364 TEU from 13,864 TEU previously.
The two vessels to be acquired at approximately US$68.1 million each are being constructed at Dalian Shipbuilding Industry Co., Ltd, one of China’s most reputable shipyards. They are scheduled for delivery in November and December 2008 respectively. This is PST’s first acquisition since it went public in May 2006.
The acquisition will diversify PST’s revenue base. After the acquisition, the total number of vessels under PST’s portfolio will increase from 8 to 10 and trust expenses per vessel could potentially be lower due to greater economies of scale.
The new vessels will be chartered to CSAV for US$26,000 per day for the first two years and US$25,500 per day for the remaining three years. CSAV is based in Valparaiso, Chile. As on 12th September 2007, the company operates about 84 ships with a slot capacity in the region of 244,000 TEUs. Listed on the Chilean Stock Exchange, CSAV is ranked 16th in the world among container liner operators.
Subhangshu Dutt, CEO of PSTM, said: “We are pleased that our first acquisition is covered by a charterer of such high standing as CSAV. This acquisition is in line with our principal strategy of investing in quality income-producing vessels which will provide a regular and sustainable steam of income to our unitholders as well as enhance the yields on their investments.”
Mr. Dutt also added that the acquisition could mark the start of a longer-term relationship with CSAV, leading to more value creation opportunities in the future.
In connection with the acquisition, PST has entered into a ship management agreement with PIL for the provision of ship management services for one year with an agreed ship management fee of US$ 90,000 per vessel per annum. As the acquisition from PIL and the provision of ship management services by PIL for a fee would constitute interested person transactions under the Listing Manual as their aggregate value exceeds 5% of the latest audited NTA of PST for the year ended 31 December 2006, the acquisition from and provision of ship management services by PIL is conditional upon approval of PST’s unitholders during the extraordinary general meeting to be convened on a later date.
The trustee-manager is PST Management Pte. Ltd., a wholly-owned subsidiary of PIL, which owns about 34% of PST.
Source : SGX