Author: tfwee
Sabana Reit – BT
Sabana Real Estate Investment Management Pte Ltd announced on Monday that Sabana Shari'ah Compliant Industrial Real Estate Investment Trust (Sabana Reit) has entered into two sale and purchase agreements to acquire two properties to diversify its income stream.
In the first acquisition, Sabana Reit will purchase a 217,580 sqft property along Joo Koon Circle from Ringford Pte Ltd for S$40.2 million. Comprising of a two-storey building with mezzanine floor and a three-storey factory building, the property is a JTC leasehold estate with a remaining tenure of 36.3 years.
The second property, also a JTC leasehold estate with 45.3 years remaining on the lease, carries a purchase consideration of S$39.8 million from Winfred Pte Ltd, and is a six-storey warehouse along Toh Tuck Link occupying 180,735 sqft.
Both properties are being sold on a sale and lease basis wherein Sabana Reit will upon completion of the acquisition, take master lease of the entire premises for a term of three years on a triple net basis.
Sabana Reit has paid a 1 per cent deposit for each property and the acquisitions, completely funded by debt, are expected to be completed by the fourth quarter of 2011
AIMSAMPReit – SGX
RECEIPT OF APPROVAL IN-PRINCIPLE
FOR PRIVATE PLACEMENT OF 12,195,122 NEW UNITS IN AIMS AMP CAPITAL INDUSTRIAL REIT TO CWT LIMITED
AIMS AMP Capital Industrial REIT Management Limited, as manager of AIMS AMP Capital Industrial REIT (“AIMSAMPIREIT”, and the manager of AIMSAMPIREIT, the “Manager”), is pleased to announce that further to its announcements dated 26 July 2011 and 15 August 2011 in relation to, among others, the private placement of 12,195,122 new units in AIMSAMPIREIT (the “Placement Units”) to CWT Limited (“CWT”) or its subsidiary (the “CWT Private Placement”), the Manager has today obtained the approval in-principle from Singapore Exchange Securities Trading Limited (the “SGX-ST”) for the listing of, dealing in, and quotation on the Main Board of the SGX-ST of, the 12,195,122 Placement Units to be issued pursuant to the CWT Private Placement at an issue price of S$0.205 per Placement Unit.
The Placement Units are expected to be issued to CWT on 5 September 2011. Subject to applicable laws and regulations, the Manager intends to use the entire gross proceeds of S$2,500,000.01 from the CWT Private Placement for working capital and general corporate purposes of AIMSAMPIREIT. The SGX-ST’s approval in-principle is subject to, inter alia, compliance with the SGX-ST’s listing requirements.
The SGX-ST’s approval in-principle is not to be taken as an indication of the merits of the CWT Private Placement, the Placement Units, AIMSAMPIREIT and/or its subsidiaries.
First Reit – BT
HEALTHCARE real estate investment trust First Reit announced on Friday that its second-quarter distribution per unit (DPU) is 1.58 cents compared to 1.92 cents for the same time period a year ago.
After taking into account the effect of the rights issue made in December 2010, the second-quarter DPU of 1.58 cents this year is up from an adjusted DPU of 0.85 cents in the previous corresponding time period.
First Reit reported an annualised DPU of 6.37 cents, while its distribution yield stood at 7.8 per cent based on its closing price of 82 cents on July 20.
Distributable income for the second-quarter this year rose 86.5 per cent to S$9.89 million, up from S$5.30 million last year.
Gross revenue increased 75.3 per cent year-on-year to S$13.2 million helped by maiden contributions from two of its new hospitals acquired in December 2010.
Looking ahead, First Reit said it is in preliminary discussions with its sponsor, Lippo Karawaci, to acquire two of the latter's new hospitals in Indonesia.
First Reit also said its gain on divestment of the Adam Road property in the first quarter this year is about S$8.7 million, which will be distributed either wholly or partially to unitholders in the coming quarters.
Suntec – BT
Suntec Real Estate Investment Trust reported a 22.3 per cent increase in second-quarter distribution income of S$56.18 million, compared to S$45.93 million a year ago.
The distribution per unit for the quarter ended Jun 30 amounted to 2.53 Singapore cents, translating to an annualised distribution yield of 6.6 per cent.
Gross revenue for the quarter was S$61.3 million, marginally lower that last year by 1.8 per cent.
The gross retail revenue was S$31.9 million, 2.7 per cent lower than a year ago. This was mainly due to lower rental income achieved for Suntec City Mall.
The gross office revenue was S$29.4 million, 0.7 per cent lower than the previous corresponding time period.
Suntec REIT expects to exceed the forecast distribution per unit for FY2011.
New Reit – Kim Eng
New REIT in the making – Another property stock enters the spotlight. A news report today revealed that private developer Far East Organization (FEO) is said to be planning to raise at least $500m through the listing of its hotel and serviced residence assets in a REIT as early as next year. What is interesting is that one of the assets to be spun off into the REIT is Orchard Parade Hotel, owned by FEO’s listed entity, Orchard Parade Holdings (OPH). In fact, in a statement last evening, OPH confirmed that it is in preliminary discussion with FEO over the injection of assets into the REIT. Other assets owned by OPH include Albert Court Village Hotel near the upcoming Rochor MRT Station, and Central Square Village Residences along Havelock Road. Both would fit the REIT’s profile well. A possible scenario is the privatisation of OPH before the formation of the REIT next year. This is because the hospitality assets are worth an estimated $500m collectively, and that already makes up 90% of OPH’s current market capitalisation. We had earlier identified Orchard Parade as a potential privatisation target on the premise that the stock trades at a large discount to book and has substantial shareholders with deep pockets.