Month: November 2007
MI-REIT – SGX
– Increases FY2008 DPU by 0.27 cents per unit and FY2009 DPU by 0.27 cents per unit
Singapore, 29 November 2007 – MacarthurCook Investment Managers (Asia) Limited (“MCKIM Asia”), the Manager of MacarthurCook Industrial REIT ( “MI-REIT” ), is pleased to announce that MI-REIT, through its Trustee, HSBC Institutional Trust Services (Singapore) Limited ( the “Trustee” ), has signed a sale and purchase agreement to acquire an office and warehouse facility in the Tai Seng industrial precinct for a total consideration of S$25.0 million.
Under the agreement, Powermatic Data Systems Limited (“Powermatic”), a publicly company listed on the Singapore Exchange, will leaseback 135 Joo Seng Road for five years with the option to extend for another five years. The lease will commence upon completion of the acquisition, which is scheduled for February 2008.
Powermatic is a high end manufacturer and distributor of computer hardware and software products in Asia, Europe and the United States.
135 Joo Seng was transacted at the initial yield of 7.3%, and will be accretive to MI-REIT’s distribution per unit (“DPU”) following completion. The pro forma financial effect(1) of the acquisitions on DPU is:
– an additional 0.27 Singapore cents per unit, representing an increase of 3.64% from the forecast(2) FY2008 DPU of 7.41 Singapore cents per unit for the financial year ended 31 March 2008 (“FY2008”); and
– an additional 0.27 Singapore cents per unit, representing an increase of 3.56% from the forecast FY2009 DPU of 7.59 Singapore cents per unit for the financial year ended 31 March 2009 (“FY2009”).
(2) No comparisons against a corresponding period in the previous year can be made as no pro forma financials are available. SGX-ST had granted MI-REIT a waiver from the requirement to prepare historical pro forma statements of total return, cash flow statements and balance sheets for the purpose of its initial public offering.
More Information, Click Here
MapleTree – SGX
MAPLETREELOG ACQUIRES 8th PROPERTY IN JAPAN FOR S$18 MILLION
(1) Based on exchange rate of S$1.00 = JPY80.19
(2)Assuming MapletreeLog has purchased, held and operated the property for the financial year ended 31 December 2006 (based on 41 properties) and that the acquisition is 100% debt-funded.
More Information, Click Here
AllCo – BT
Allco cancels US$104m unit offer
SINGAPORE – Allco Commercial Real Estate Investment Trust, a property trust based on Singapore and Australian assets, said on Wednesday it has cancelled a planned preferential offering that would have raised up to $150 million (US$104 million) due to poor market conditions.
The trust said it was not proceeding with its plan, announced on Nov 16, to sell up to 175.2 million units to existing unitholders under a one-for-four preferential offer.
‘There is no pressing need for Allco Reit to be raising capital at this time,’ Nicholas McGrath, chief executive officer of Allco Reit’s manager, said in a statement.
Rising risk aversion has turned off investors from yield-driven property and asset trusts, sparking the cancellation of two major initial public offers in Singapore worth a combined US$800 million earlier this month.
An aircraft lease backed by a unit of General Electric and a real estate investment trust by Japanese developer Asia Pacific Land Group postponed their Singapore IPOs after a disastrous market debut by Saizen Reit, whose units fell 13 per cent on its Nov 2 debut. — REUTERS
PST – UOBKH
PST (PST SP)
Share Price: US$0.41
Target Price: US$0.50
PST has announced that it is acquiring from its sponsor Pacific International Lines (PIL) two new 1,800 TEU container vessels at US$43m each. The acquisitions are pursuant to a right of first refusal agreement entered into between PST and PIL dated 25 April 2006 and will increase PST’s fleet by 16% from 22,364 TEUs to 25,964 TEUs. The new vessels are currently being built by Dalian Shipbuilding Industry Co. Simultaneously, PST has entered into bareboat charters with PIL. The charter hire per vessel has been agreed at a fixed rate of US$11,550 per day for eight years commencing from the date of completion of the acquisitions.
The vessels have been valued by Howe Robinson Marine Evaluations at US$43m, as at 23 Oct 07 on a charter-free basis. The vessels are scheduled to be delivered by Dalian Shipbuilding to PST in Mar 08 and May 08 respectively. PST expects the acquisitions to be accretive to PST’s distributable cash flow once they are delivered and in operation. The vessels will increase PST’s current aggregate contracted revenue by 15.7 % to approximately US$ 61.9m per annum. The acquisitions will also increase PST’s current contracted fleet from 10 to 12 vessels.
PST intends to fund the acquisitions wholly with debt finance although the final financing structure will be subject to further evaluation by the trustee manager. In determining the appropriate financing for PST in respect of the acquisitions, the Trustee-Manager will take into account amongst others prevailing market conditions and the relative costs of financing with a view to arriving at an efficient capital structure for PST. There will be no acquisition fee payable to the Trustee-Manager in connection with the acquisitions.
We estimate the two vessels will contribute a gross charter income of US$4.2m per vessel. Net of trustee fees, the operating profit before funding cost is US$4.0m per vessel. This translates into a net asset yield of 9.4% (operating profit before funding). Assuming cost of debt at 6%, the accretion to PST’s distributable cash flow before debt repayment is 3.4% or a total US$2.9m for both vessels. This represents an increase of 16% on our FY09 projected distributable cash of US$17.9m for PST. The actual impact on distributable cash flow will depend on the debt repayment structure. If PST were to adopt the same debt structure of as the other two shipping trusts, Rickmers Maritime and FSL Trust (i.e. a balloon or bullet repayment structure with no or minimal debt repayment in the vessels’ initial years), the acquisitions will be significantly accretive to distributable cash. Among the three shipping trusts, PST is already the most conservative in repayment of debt related to the initial shipping fleet. It is currently repaying its debt over 10-12 years from IPO against its initial fleet’s remaining useful lifespan of 26 years from IPO.
Maintain BUY and our target price of US$0.50. PST currently trades at a net dividend yield of 10.4%.
HWT – UOBKH
Issue statistics:
Offer size: 165.0m units
Public Tranche – 30.0m units
Placement Tranche – 135.0m units
Price: S$0.78
NAV per Unit (post-IPO): S$0.73
Forecast DPU: 4.46 cents (FY08)
5.26 cents (FY09)
Market Cap (post-IPO): S$217.9m
Open: 24 Nov 2007
Close: 28 Nov 2007, 12.00noon
Trading: 3 Dec 2007, 2.00p.m. (on “ready” basis)
Lead Manager: JP Morgan
Overview
Hyflux Water Trust (HWT) is the first pure-play global water business trust to be listed on a securities exchange in Asia that provides investors with an opportunity to invest in water-related infrastructure assets (including, but not limited to, water treatment plants (“WTPs”), wastewater treatment plants (“WWTPs”), water recycling plants (“WRPs”), desalination plants (“DPs”) and water distribution companies) in the People’s Republic of China (“PRC”), India, the Middle East and North Africa region (“MENA”) and other high-growth markets globally.
The Trustee-Manager believes that the overall positive outlook on the global water sector, the strong market fundamentals of the PRC water sector, together with long-term, regular and predictable cash flows from a high quality Initial Portfolio, are several key highlights for investing in HWT.
The Trustee-Manager plans to capitalise on the synergistic business models of HWT and Hyflux Ltd (“Sponsor”), the sponsor of HWT, the continuing commitment of the Sponsor to HWT, and the extensive water-related infrastructure expertise and wide networking contacts of the Trustee- Manager to acquire water-related infrastructure assets from the Sponsor through the right of first offer, right of first refusal and right to match granted by the Sponsor (“ROFOAR”) and from third parties. It also plans to increase the distribution of HWT organically through an improvement in utilisation and from the “inbuilt” capacity expansion potential of the Initial Plants.
Upon completion of the Offering, HWT will acquire the entire issued share capital of Hyflux Utility Ltd (“HUL”) from SinoSpring Utility Ltd. (“SUL”), a subsidiary of the Sponsor. HUL owns the entire issued share capital of 11 special purpose companies (“SPCs”), with each SPC owning one or more water infrastructure assets in the form of a WTP, WWTP and/or a WRP. Immediately upon Listing, HWT will have 13 Plants, comprising three WTPs, eight WWTPs and two WRPs (“Initial Plants” and the business undertakings carried on through such Plants, “Initial Portfolio”).
Seven of the Plants have commenced commercial operations as at the date of HWT’s Prospectus (“Operating Plants”) and six of the Plants are expected to commence commercial operations by the end of FY2008 (“Completing Plants”). Each of the SPCs owning the Plants has entered into a long-term Concession Agreement with the relevant Administrative Authorities of between 20 to 30 years. In addition, Yangkou SPC (which owns a WTP) and Liaoyang SPC (which owns a WWTP with recycled water output) has each entered into a Water Supply Agreement with various users.
Please refer to the Prospectus for risk factors and other details of the IPO.