Month: September 2007
First Reit – SGX
Please click here for more detail of the announcement.
Suntec – UOBKH
Payment for One Raffles Quay
Proposed acquisition of One Raffles Quay. Suntec REIT has entered a conditional share purchase agreement with Cavell (SPV holds one-third of issued share capital of One Raffles Quay) to acquire One Raffles Quay (ORQ) for S$941.5m. The acquisition is expected to be yield-accretive, taking into account potential rental top-up payments of S$103.5m over 54 months. 10% new equity for the acquisition. Suntec is paying for ORQ via issue of new units worth S$94.5m and the balance in cash. The cash portion would be satisfied with Suntec’s existing debt capacity.
No change to our earnings estimates. The acquisition is targetted to complete by 1Q08, upon which Suntec REIT’s total portfolio would increase to S$4.8b. We maintain our DPS estimates as we have already factored in the acquisition.
Lower target price due to increase in cost of capital. We increase our assumed risk free rate by 20bp and risk premium by 50bp due to greater market volatility. We reduce our fair price from S$2.29 to S$2.06 due to higher WACC assumptions. Maintain HOLD.
Rickmers – SGX
RICKMERS MARITIME SPEEDS UP ACCRETIVE GROWTH WITH ACQUISITION OF FOUR 4,250 TEU CONTAINER VESSELS
Seven-year time charters to largest Korean liner shipping company
Acquisitions expected to be yield-accretive
Continues rapid expansion of fleet capacity
Singapore, 12th September 2007 – Rickmers Trust Management Pte. Ltd. (“RTM”), the trustee-manager of Rickmers Maritime, is pleased to announce that it has entered into a memorandum of understanding (“MOU”) to acquire four 4,250 TEU container vessels (the “Vessels”) from Polaris Shipmanagement Company Limited pursuant to the right of first offer granted to RTM under the Omnibus Agreement dated 24 April 2007 entered into by (1) RTM (acting on behalf of Rickmers Maritime), (2) Rickmers Holding GmbH Cie. KG, (3) Pacific Holdings International GmbH & Cie. KG and (4) Mr. Bertram R. C. Rickmers. The new acquisitions are in addition to the recently announced acquisition of four 13,100 TEU container vessels, which together will increase Rickmers Maritime’s current total contracted fleet capacity by 170% from 40,910 TEU to 110,310 TEU.
The four new Vessels are scheduled to be delivered between February and December 2009 from Yangzijiang Shipbuilding (Holdings) Ltd.’s (“Yangzijiang”) new shipbuilding facilities in the Jiangsu province of the People’s Republic of China (“PRC”). Yangzijiang is one of the leading shipbuilders in the PRC and is listed on the Mainboard of the Singapore Exchange Securities Trading Limited (“SGX-ST”). The purchase price of each vessel is US$69.0 million, to be paid upon delivery of the respective Vessels to Rickmers Maritime.
Each vessel will commence service upon delivery with seven-year, fixed-rate time charters to Hanjin Shipping, Seoul (the “Charterer”) at US$25,950 per day. Upon expiration of the initial seven-year charter period for each vessel, the Charterer has the option to extend the charter period for an additional three years at US$27,950 per day. Hanjin Shipping is Korea’s largest carrier that operates approximately 60 liner and tramper services transporting over 100 million tons of cargo annually worldwide. It ranks among the world’s top 10 container carriers1. The Vessels will be built based on the same design as Rickmers Maritime’s current fleet of 4,250 TEU vessels, and this is expected to result in economies of scale and operating efficiencies. Each of the Vessels will be 260 metres in length, 32.25 metres in breadth and will have a cargo carrying capacity of 50,000 metric tonnes. The MAN B&W 49,720 horsepower fuel-efficient engines will allow each vessel to sail at a service speed of 24.5 knots.
The Vessels are among the nine 4,250 TEU vessels that were disclosed in Rickmers Maritime’s Initial Public Offering Prospectus2 as falling under the right of first offer granted to RTM through Rickmers Group. These Vessels will provide a boost to Rickmers Maritime’s already fastgrowing fleet capacity. Last month, RTM announced the acquisition of four mega-sized container vessels, which at 13,100 TEU are among the largest container vessels in the world to be built.
Mr. Thomas Preben Hansen, Chief Executive Officer of RTM said: “With this MOU, Rickmers Maritime is taking yet another major step towards achieving growth through accretive acquisitions with well-established and internationally renowned counterparties. Hanjin Shipping is the largest Korean container liner shipping company and we are proud to have them as our partner. With this acquisition in place, we will boast a more diversified network of liner companies that we collaborate closely with.”
Mr. Quah Ban Huat, Chief Financial Officer of RTM, added, “Each of the new Vessels is expected to contribute approximately US$9 million in revenue and US$7 million in EBITDA3 per annum in its initial years, which should lead to an increase in distributable cash flow once the Vessels are delivered and operating. Financing the new acquisitions is currently being arranged and will be announced as soon as it is finalised. Going forward, we will continue to seek yield accretive acquisitions as part of our growth strategy and goal to deliver positive returns to our Unitholders.”
The purchase of the Vessels is subject to the entry into of Memorandum of Agreements. The transaction will be classified as an interested person transaction under the Listing Manual of the SGX-ST and is subject to the approval of Unitholders at an extraordinary general meeting (“EGM”) to be convened. A circular in relation to the acquisition containing more detailed financial information, a notice of the EGM and the recommendation of the audit committee will be dispatched to Unitholders in due course.
1 Source: AXS-Alphaliner TOP 100, Operated fleets as at 12 September 2007
2 Dated 24 April 2007
3 EBITDA to be net earnings before interest, undrawn credit facility fees, taxes, depreciation and amortisation of deferred financing fees, drydocking expenses and charter contracts.
Source : SGX
Suntec – SGX
SUPPLEMENTAL AGREEMENT IN RELATION TO THE PROPOSED ACQUISITION OF ONE-THIRD INTEREST IN ONE RAFFLES QUAY
Singapore, 11 September 2007 – ARA Trust Management (Suntec) Limited (“ARA Suntec”), Manager of Suntec Real Estate Investment Trust (“Suntec REIT”), wishes to announce that HSBC Institutional Trust Services (Singapore) Limited, as trustee of Suntec REIT, has today entered into a supplemental agreement to the share purchase agreement signed with Cavell Limited (the “Vendor”) on 30 July 2007 for the acquisition by Suntec REIT of a one-third interest in One Raffles Quay through the acquisition of the entire issued share capital of Comina Investment Limited (“Comina”).
Under the terms of the supplemental agreement, the consideration for the purchase of the entire issued share capital of Comina shall be satisfied by (i) allotment and issue of units in Suntec REIT (“Consideration Units”) of an aggregate value of S$94.15 million, and (ii) payment in cash, by Suntec REIT to the Vendor. This is subject to, inter alia, the approval by the unitholders of Suntec REIT which will be sought at a general meeting to be convened to approve the proposed acquisition, as well as regulatory approval by the Singapore Stock Exchange.
Mr Justin Chiu, Chairman of the Manager said, “The issue of the consideration units underscores Cheung Kong’s commitment and support to Suntec REIT by aligning its interest along with that of Suntec REIT’s unitholders”.
Source : SGX
MapleTree – SGX
(I) H.S.(M) 17454, LOT NO. PT 2607, LOCALITY OF SUNGAI PENAGA, MUKIM OF PETALING, DISTRICT OF PETALING, STATE OF SELANGOR DARUL EHSAN, MALAYSIA FOR RM19.945 MILLION; AND
(II) H.S.(M) 10905, LOT NO. PT 298, LOCALITY OF SUNGAI PENAGA, MUKIM OF PETALING, DISTRICT OF PETALING, STATE OF SELANGOR DARUL EHSAN, MALAYSIA FOR RM9.5 MILLION
1 Mapletree Logistics Trust Management Ltd., as manager of Mapletree Logistics Trust (“MapletreeLog”), is pleased to announce the completion of the acquisition of (i) H.S.(M) 17454, Lot No. PT 2607, Locality of Sungai Penaga, Mukim of Petaling, District of Petaling, State of Selangor Darul Ehsan, Malaysia (the “Subang 3 Property”); and (ii) H.S.(M) 10905, Lot No. PT 298, Locality of Sungai Penaga, Mukim of Petaling, District of Petaling, State of Selangor Darul Ehsan, Malaysia (the “Subang 4 Property”) today for a purchase price of RM19.945 million and RM9.5 million respectively.
2 MapletreeLog (M) Holdings Sdn. Bhd. (“MMH”), a subsidiary of MapletreeLog, has today completed the sale and purchase of the Subang 3 Property and the Subang 4 Property, in connection with the two separate conditional sale and purchase agreements entered into between (i) Haluan Kreatif Sdn Bhd and MMH, and (ii) LYL Building Materials Sdn Bhd and MMH, respectively, on 16 February 2007.
3 The purchase price and other acquisition costs of the Property are funded by the proceeds from the issue of new units under the equity fund raising exercise of MapletreeLog, which was completed on 25 January 2007.