Month: January 2012
Fortune – BT
Fortune Reit hires ANZ, DBS and Stanchart for loan
FORTUNE Real Estate Investment Trust (Reit) hired Australia and New Zealand Banking Group Ltd (ANZ), DBS Bank Ltd and Standard Chartered plc (Stanchart) to arrange and underwrite a HK$1.4 billion (S$233 million) three-year loan, according to a person familiar with the matter.
The three banks will begin marketing the facility to other lenders in January, said the person.
The loan comprises a HK$1.1 billion term loan and a HK$300 million revolving credit facility and pays a margin of 200 basis points over the Hong Kong interbank offered rate, according to a filing with the Hong Kong stock exchange. Proceeds of the term loan are for Fortune Reit’s intended acquisition of two retail properties in Hong Kong, Belvedere Garden Property and Provident Centre Property, purchased for HK$1.25 billion and HK$650 million respectively, according to the statement. The loan is secured by rentals, deposits, and proceeds from properties.
Fortune will also use an existing revolving credit facility of HK$970 million due 2016 to fund the acquisitions. That facility pays a margin of 91 basis points more than Hibor, according to data compiled by Bloomberg. ANZ, DBS and Stanchart were bookrunners on the existing HK$970 million facility, said the person yesterday.
Fortune has the equivalent of US$489 million in loans maturing before the end of 2016, according to data compiled by Bloomberg. — Bloomberg
PCRT – BT
PCRT seals lease deal with Shanghai Summit
Contract value for mall lease totals 94.1m yuan over 2.5 years
MAINBOARD-LISTED Perennial China Retail Trust (PCRT) said yesterday that it has leased out parts of its Shenyang Longemont Shopping Mall to Shanghai Summit Group for a total contract value of 94.1 million yuan (S$19.2 million).
The lease agreements cover a total of 57,028 square metres of retail space at Shenyang Longemont Shopping Mall, and will be leased for the purposes of operating an indoor rooftop theme park, indoor ice-skating rink, a supermarket, a Yes Sir Coffee and several other food and beverage outlets.
The lease agreements are for two-and-a-half years, until June 30, 2014, with renewal at the lessor’s option and subject to terms and conditions to be agreed by both parties.
PCRT, which was listed here in June this year, owns half of the mall.
According to PCRT’s trustee- manager, Perennial China Retail Trust Management, the lease agreements and forward renewal terms with Summit will ensure long-term sustainable and stable income for the trust.
The lease agreement with respect to the indoor rooftop theme park and indoor ice skating rink is for a monthly rent of 1.15 million yuan and 132,632 yuan respectively, or 12 per cent of the month’s gross turnover, whichever is higher.
The lease agreement for the supermarket is for a monthly rent of 900,409 yuan or 4 per cent of the month’s gross turnover, whichever is higher.
The agreement for the F&B outlets is 888,023 yuan per month, from Dec 29, 2011 to June 30, 2013. From July 1, 2013 to June 30, 2014, a monthly rent of 947,586 yuan will be charged. Turnover rent is pegged at 13 per cent.
The lease agreement for Yes Sir Coffee is for a monthly rent of 55,967 yuan or turnover rent at the rate of 15 per cent, whichever is higher.
PCRT closed trading yesterday at 47.5 cents.