Month: January 2008
AREIT – BT
A-Reit’s portfolio hit record occupancy of 99% at end-2007
ASCENDAS Real Estate Investment Trust (A-Reit) said yesterday its overall portfolio occupancy rate increased to a record 98.7 per cent at end-2007 from 96.1 per cent at end-2006.
The occupancy rate for A-Reit’s multi-tenanted buildings rose to 97 per cent at end-2007 from 93.1 per cent at end-2006, the trust said.
Based on value, A-Reit’s portfolio comprises 51 per cent multi-tenanted buildings and 49 per cent sale- and-leaseback properties.
A-Reit renewed and signed new leases including expansions amounting to a net lettable area of 46,933 sq m for the three months ended Dec 31, 2007. These leases represent 6.8 per cent of the net lettable area of its multi-tenanted buildings and annualised rental income of $11.1 million.
Total new leases including expansions for the quarter were 16,961 sq m – 28.7 per cent in business and science parks, 32.8 per cent in hi-tech industrial buildings and 38.6 per cent in two other sectors – light industrial and flatted factories and logistics and distribution centres. A-Reit said HansaPoint@CBP, a partial built-to-suit development project it undertook in November 2006, attained 100 per cent pre-committed occupancy during construction. The development is expected to be completed next month.
Looking ahead, demand for industrial space is likely to remain healthy due to multi-national companies setting up facilities in Singapore and the spillover effect from tight office supply in the central business district, A-Reit said.
But anticipated high supply of 702,000 sq m of logistics and distribution space in the next two years is expected to dampen rents, it warned.
AllCo – BT
Three Allco Reit properties gain $121m in value
Their combined value rose 36.8% last year to $1.13b at end-December
ALLCO Commercial Real Estate Investment Trust (Allco Reit) said yesterday that the combined value of three of its property assets has jumped by $120.8 million or 12 per cent since the end of June last year, based on the latest revaluation.
The three properties are China Square Central and 55 Market Street in Singapore, and Central Park in Perth. Allco Reit owns the first two properties, and has a 50 per cent stake in the third.
This means that the total value of the trust’s stakes in the three properties rose 36.8 per cent or $302.8 million over the full year in 2007. Their combined value at the end of December was $1.13 billion.
The Singapore properties were valued by Savills and the Perth property was valued by CB Richard Ellis.
‘The most significant increases in this latest round of asset valuations were seen at China Square Central and 55 Market Street in Singapore,’ said Nicholas McGrath, chief executive of Allco Reit. ‘These assets increased in value by 17 per cent and 14 per cent respectively in only six months.’
China Square Central, 55 Market Street and Central Park have all achieved significant growth in value since end-June 2007, adding to earlier increases of 15 per cent, 43 per cent and 26 per cent respectively in the first six months of last year.
‘The continued improvements to Allco Reit’s underlying asset values are a direct reflection of (the trust’s) asset management strategy, combined with underlying market rental growth across the Singapore and Perth commercial property markets,’ Mr McGrath said.
Allco Reit’s share price closed 1.5 cents lower at 80.5 cents yesterday. The trust’s share price has fallen 10.1 per cent since the start of the year.
A-REIT – SGX
17 January 2008, Singapore – Ascendas Real Estate Investment Trust (“A-REIT”) has renewed and signed new leases (including expansions) amounting to a total net lettable area of 46,933 sqm for the three months ended 31 December 2007 (the “Period”). These leases represent 6.8% of the net lettable area of its multi-tenanted buildings(1) and an annualised rental income of S$11.1 million for A-REIT.
The overall portfolio occupancy rate increased to a record high of 98.7% as at 31 December 2007 compared to 96.1% a year ago. Occupancy rate for A-REIT’s multi-tenanted buildings has also increased to 97.0% at the end of the Period versus 96.2% as at 30 September 2007. Total new leases (including expansions) for the Period were 16,961 sqm, of which 28.7% was in Business and Science Parks, and 32.8% was in Hi-Tech Industrial properties. The remaining 38.6% was in the other two sectors – Light Industrial & Flatted Factories and Logistics & Distribution Centres.
A-REIT’s portfolio comprises 51% multi-tenanted buildings and 49% sale-and-leaseback properties based on portfolio value.
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