Month: October 2007
LMIR – BT
Lippo to raise up to $587m with retail Reit
INDONESIA’S Lippo Group will be raising up to $587.4 million with the planned Singapore listing of a real estate investment trust (Reit) based on its retail properties in Indonesia.
The Lippo-Mapletree Indonesia Retail Trust (LMIR) will offer 645.5 million units at 78 to 91 cents a unit, according to the trust’s preliminary prospectus which was lodged with the Monetary Authority of Singapore yesterday.
Separate from the offering, Lippo will subscribe for 287.7 million units in the trust while Singapore’s Mapletree Investments will subscribe for 127.3 million units. This means that Lippo and Mapletree will hold stakes of at least 27.1 per cent and 12 per cent in the trust once it is listed.
Of the 645.5 million units that will be part of the share offering, 625.5 million units will be placed out to institutional and other investors, while 20 million units will be offered to the public.
The trust will be the first Reit in Singapore to provide exposure to Indonesia’s growing retail sector.
Two other SGX-listed Reits have significant exposure to overseas retail markets – CapitaRetail China Trust, which owns retail properties in China, and Fortune Real Estate Investment Trust, which holds retail properties in Hong Kong.
LMIR’s initial property portfolio will comprise seven retail mall properties and seven retail spaces located within other retail malls, all of which are located in Indonesia.
Reference : Prelim Prospectus
AREIT – BT
A-Reit’s Q2 income for distribution up 15% at $46.4m
ASCENDAS Real Estate Investment Trust (A-Reit) said yesterday its second-quarter distributable income rose 15 per cent to $46.4 million, from $40.5 million a year earlier, as demand for the trust’s business space grew.
The better performance lifted A-Reit’s distribution per unit (DPU) to 3.51 cents, up 11 per cent from 3.16 cents paid for the previous corresponding period.
Net property income for Q2 ended Sept 30, 2007 increased 16 per cent to $60.1 million, from $51.9 million a year earlier.
A-Reit said its better performance was due to higher revenue resulting from higher occupancy and rents.
The occupancy rate for A-Reit’s portfolio reached 98.3 per cent in Q2. And rents at business and science parks and hi-tech industrial properties rose 32 per cent and 15 per cent respectively from Q1.
‘This can be attributed to the spillover effect from the tight CBD office market and our active asset management initiatives,’ said Tan Ser Ping, chief executive of the Reit’s manager.
For the half-year ended Sept 30, A-Reit’s distributable income rose 14 per cent to $91.1 million, while DPU rose 10 per cent to 6.88 cents.
Going forward, A-Reit said that with the economy strong, demand for business and industrial space, especially at business and science parks and hi-tech industrial properties, is likely to remain healthy.
The trust said: ‘A-Reit expects to be able to deliver a return for the second half of the current financial year that is in line with its performance in the first half of the financial year.’
A-Reit’s shares closed three cents lower at $2.39 yesterday. The stock price has fallen 10.5 per cent since the start of the year, compared with a 25.5 per cent climb in the Straits Times Index.
CMT – BT
CMT’s Q3 net income up 29.1% to $53.2m
The Reit’s Q3 showing is 17.2% above the trust manager’s forecast
SINGAPORE’S biggest real estate investment trust, CapitaMall Trust (CMT), reported third-quarter group distributable income of $53.2 million, 17.2 per cent above the trust manager’s forecast and 29.1 per cent higher than in the year-ago period.
The shopping centre Reit yesterday also revealed plans to develop a low office tower with about 95,000 sq ft gross floor area (GFA) above the retail space at Tampines Mall. The time frame has yet to be finalised, but work could begin as early as sometime next year. CMT obtained outline planning advice from Urban Redevelopment Authority in July for a plot ratio increase for an office development and the trust has proceeded to apply for provisional permission to fully use the additional plot ratio increase from 3.5 to 4.2 for an office development.
For Funan DigitaLife Mall, CMT is currently exploring various options to unlock the value of this asset, after receiving provisional permission earlier this year, to build a nine-storey commercial block (predominantly offices) to maximise unutilised GFA of about 386,000 sq ft.
Asset enhancement works at Bugis Junction will see balconies being added on level 2 along Hylam and Malay streets, while opaque shopfronts on level 3 will be converted to glass parapets. Sembawang Shopping Centre’s redevelopment is on track for completion in Q4 2008.
CMT is already one of Singapore’s biggest owners of malls with $5.8 billion worth under its belt, but CapitaMall Trust Management Ltd’s CEO Pua Seck Guan says he is confident of growing this to $8 billion by 2010.
This will come from acquisition of malls from parent CapitaLand’s portfolio (such as Clarke Quay and a half-stake in Ion Orchard), as well as from other parties because of ‘CMT’s competitive cost of capital, superior skill set to extract value and established platform that allows us to optimise rentals,’ Mr Pua says.
Group gross revenue for the third quarter ended Sept 30, 2007, was $114.5 million, which was 20.7 per cent or $19.6 million higher than CMTML’s forecast based on an offer information statement dated August last year.
Roughly three quarters of this outperformance was due to consolidation of three malls owned by CapitaRetail Singapore Ltd from June 1 this year, while the rest was due to top-line revenue growth at the other malls in the CMT portfolio.
CMT’s Q3 group gross revenue was also 39.5 per cent higher than that in the year-ago period and the increase was due to a full quarter’s contribution from the trust’s 40-per-cent stake in Raffles City this round, compared with just a month’s contribution in Q3 2006; the consolidation of the three malls under CRS since June 1 this year; as well as revenue increase in other malls largely because of new and renewed leases at higher rates, plus the completion of asset enhancement at IMM Building late last year.
Group net property income for Q3 2007 was $76.8 million, 21.7 per cent higher than the forecast and 44.5 per cent above that in the same year-ago period.
CMT unitholders will receive a distribution per unit (DPU) of 3.40 cents for Q3, inclusive of a 0.09 cent capital distribution from the trust’s investment in CRCT. The 3.40-cent payout works out to 13.49 cents on an annualised basis, or a distribution yield of 3.69 per cent based on CMT’s closing price yesterday of $3.66.
AREIT – SGX
1. Distributable income per unit (“DPU”) of 3.51 cents represents a 11.1% year-onyear (“yoy”) growth over 3.16 cents
2. Gross revenue of S$80.2 million is 15% above 2Q FY2006/07 of S$69.9 million
3. Net property income of S$60.1million is 16% above 2Q FY2006/07 of S$51.9million
19 October 2007, Singapore – The Board of Directors of Ascendas-MGM Funds Management Limited (the “Manager”), the manager of Ascendas Real Estate Investment Trust (“A-REIT”), is pleased to announce a DPU of 3.51 cents per unit for the three months ended 30 September 2007, an increase of 11.1% on the 3.16 cents recorded in the same quarter of the last financial year.
Chief Executive Officer of the Manager, Mr Tan Ser Ping said, “On the back of the positive
economic performance and the increasing demand for quality business space, we are pleased to report a 15.9% year-on-year increase in our net property income to $118.2 million and a 10.1% increase in our distribution income per unit for the first half of FY2007/08.
The occupancy rate for the portfolio reached a high of 98.3%. Rental rates have also increased by 32% and 15% for Business & Science Parks and Hi-Tech Industrial properties respectively over 1Q FY2007/08. This can be attributed to the spillover effect from the tight CBD office market and our active asset management initiatives.
For instance, enquiries for space at our partial build-to-suit business park development project (HansaPoint) at Plot 15 Changi Business Park have been very encouraging. We are pleased to report that 84% of the space has been pre-committed five months prior to completion with some recent commitments transacted at rental rates above $3.50 psf pm.
If the positive economic and market conditions are sustained, A-REIT is poised for another year of stable returns for its Unitholders.”
A-REIT will pay out a DPU of 3.51 cents for the three months ended 30 September 2007 on 29 November 2007. A-REIT recorded a DPU of 6.88 cents for the six months ended 30 September 2007. This represents an annualized yield of 5.0% based on the closing price of $2.73 per unit on 28 September 2007.
Source : SGX
AREIT – BT
A-Reit in development projects totalling $277m
ASCENDAS Real Estate Investment Trust (A-Reit) yesterday announced new investments for development projects at Changi Business Park and in Jurong totalling $277 million, including about 42,000 square metres of built-to-suit (BTS) business park space at Changi Business Park pre-committed to a ‘leading international financial institution’.
The trust did not identify the party but market watchers said that it may be Citibank.
Giving details of A-Reit’s new investments, the trust’s manager Ascendas-MGM Funds Management said that they include the development of Changi Business Park’s Plot 8 into three business park buildings – two BTS buildings and a multi-tenant block with an amenity podium. These buildings are on land of 29,864 sq m with 30 + 30 year tenure and will have a combined gross floor area of 74,660 sq m (803,633 sq ft).
The BTS portion pre-committed to the financial institution will be built in two phases, the first slated for completion in the first quarter of 2009 and the second in Q4 2010.
The multi-tenant building, with a gross floor area of about 33,000 sq m, will have about 6,000 sq m of amenity space to cater to the increasing population at Changi Business Park. The project is expected to be ready in second-half 2009.
The total cost for all phases of the development is $191 million.
Over at Pioneer Walk in Jurong, A-Reit will develop industrial space on a 36,600 sq m plot with a 30-year tenure.
On completion, the project will have 80,609 sq m of lettable floor area in two blocks of six-storey, ramp-up high-specification space.
Costing $86 million, the development will be built in two phases and is scheduled for completion in Q3-Q4 next year.
Eighty per cent or 28,376 sq m of phase 1 space has been pre-committed and 40 per cent or 18,396 sq m of phase 2 is under offer.
A-Reit also said yesterday that it renewed and signed new leases, including expansions, for a total net lettable area of 71,433 sq m in the quarter ended Sept 30. The overall portfolio occupancy rate increased to 98.3 per cent as at that same date, from 97.2 per cent a year earlier.