Author: tfwee
MCT – BT
MCT expected to be ready for listing in early 2011
Trust's portfolio may include VivoCity, HarbourFront, PSA Building
(SINGAPORE) Mapletree Commercial Trust (MCT), which could include VivoCity, is expected to be ready for initial public offering (IPO) early next year.
The trust is expected to raise at least $500 million, Mapletree Investments chief financial officer Wong Mun Hoong said yesterday.
While there is no minimum size that Mapletree is targeting for MCT, it 'will be a sizeable IPO' of a few hundred million dollars to one billion dollars.
MCT can be ready for listing in the first half of 2011, Mr Wong told reporters on the sidelines of a press briefing on Mapletree Industrial Trust's IPO.
The portfolio is expected to include VivoCity as the anchor asset, Merrill Lynch HarbourFront, PSA Building and Mapletree Business City (MBC), an integrated business hub with Grade A specifications located on Alexandra Road.
Mapletree is currently evaluating the assets' readiness.
'VivoCity is a good anchor asset to have,' Mr Wong said, pointing to its rental resilience during the financial crisis. According to him, VivoCity currently has a value of close to $2 billion.
PSA's retail podium is currently undergoing asset enhancement to offer 87,500 square feet of net lettable retail space, which Mr Wong estimated would take 18 months to complete, while MBC is in the process of filling up its 1.78 million sq ft of net leasable space.
'Depending on the readiness, we may or may not include some of these (assets),' Mr Wong said. 'Investors are looking for good-quality investment propositions, so we will look at something that we believe will be attractive.'
He noted that Mapletree was not in a hurry to raise cash through the MCT listing, given its more than $2.5 billion of debt facility and cash available to invest.
Mapletree will consider MCT's IPO size with a view of providing sufficient liquidity and, at the same time, maintaining its strong exposure to MCT's earnings growth.
If it is launched, MCT would be the fourth real estate investment trust (Reit) by Temasek's fully owned Mapletree Investments, which also listed Mapletree Logistics Trust in 2005 and jointly launched Lippo-Mapletree Indonesia Retail Trust with Lippo Group in 2007.
Mapletree yesterday launched the Mapletree Industrial Trust IPO, which is set to raise up to $1.19 billion in gross proceeds assuming full overallotment is exercised. Mr Wong said that Mapletree was also looking at setting up private real estate funds in China and Japan.
There are currently no plans to list the Mapletree India China Fund (MIC Fund) that was set up in 2008. But once the US$1.2 billion fund is fully invested, Mapletree may set up a pure China fund of US$750 million for commercial and residential projects.
Mapletree hopes to raise US$300-US$500 million for the Japan fund to acquire 10 to 15 assets, Mr Wong added. These would be off-CBD office buildings and data centres with long leases and large anchor tenants.
AIMSAMPIREIT – SGX
Level of Subscription
AIMS AMP Capital Industrial REIT Management Limited, as manager of AIMS AMP Capital Industrial REIT (“AIMSAMPIREIT“, and the manager of AIMSAMPIREIT, the “Manager“), wishes to announce that valid acceptances and excess applications for a total of 670,009,453 Rights Units (as defined herein), representing 130.5% of the total number of Rights Units available under the fully underwritten renounceable rights issue (the “Rights Issue“) of 513,309,781 new units in AIMSAMPIREIT (the “Rights Units“), were received as at the close of the Rights Issue on 7 October 2010 (the “Closing Date“).
The valid acceptances received include the acceptances by AIMS Financial Group, AMP Capital Investors (Luxembourg No. 4) S.A.R.L., Dragon Pacific Assets Limited, APG Algemene Pensioen Groep N.V., Universities Superannuation Scheme Limited, Indus Asia Pacific Master Fund, Ltd, Hunter Hall Investment Management Ltd and Cohen and Steers Asia Limited, of their aggregate pro rata entitlement of 326,512,107 Rights Units, representing 63.6% of the total number of Rights Units under the Rights Issue.
Details of the valid acceptances and excess applications received are as follows:
|
Number of Rights |
Units % of Rights Issue |
|
|
Valid acceptances |
506,083,252 |
98.6 |
|
Excess applications |
163,926,201 |
31.9 |
|
Total |
670,009,453 |
130.5 |
First Reit
Bowsprit Capital Corporation Limited, as manager of First Real Estate Investment Trust (“First REIT”, and as manager of First REIT, the “Manager”), wishes to refer to the 2010 Second Quarter Unaudited Financial Statements & Distribution Announcement of First REIT dated 26 July 2010 stating, among other things, that First REIT has been actively considering acquisition opportunities that are available through its sponsor, PT. Lippo Karawaci Tbk (the “Sponsor”), which has a robust pipeline of healthcare assets in Indonesia.
The Manager wishes to announce that it is currently in discussions with the Sponsor in relation to the acquisition of two healthcare properties located in Indonesia, being Mochtar Riady Comprehensive Cancer Centre and Siloam Hospitals Lippo Cikarang. It is intended that these properties be leased by First REIT to the Sponsor under long term master lease agreements. The terms of the above transactions are currently being negotiated and the transactions would be subject to, among other things, the valuations of the properties, the approval of the relevant regulators, the Audit Committee of the Manager and unitholders of First REIT (“Unitholders”). The Manager is in the midst of evaluating various sources of funding to finance the acquisitions, but would like to state that no firm decision has been taken to proceed with any specific means of funding. The Manager will, in compliance with its obligations under Listing Manual (the Listing Manual”) of Singapore Exchange Securities Trading Limited (the “SGX-ST”), make the relevant announcements on SGXNET once a firm decision has been made on matters which require disclosure pursuant to the Listing Manual.
In the meantime, Unitholders are advised to refrain from taking any action in respect of their units in First REIT (“Units”) which may be prejudicial to their interests, and to exercise caution when dealing with Units.
Fortis – BT
NEW DELHI – Indian hospital operator Fortis Healthcare is looking to list a real estate investment trust in Singapore in the next six months and is looking at a market value of US$600-$700 million, a company source said.
Fortis, which fell short in a bid for control of Singapore-based Parkway Holdings, has been working on a real estate investment trust (Reit) listing for a year, the executive said, adding that regulatory challenges remain.
'Now we are quite close. A listing will still take 5-6 months,' the official, who did not want to be named, said. — REUTERS
SREIT – UBS
SREIT valuation guide
Overview
This report summarises key statistics on valuations, performance and the capital structure of REITs listed on the SGX. There are now 22 REITs, with a total market cap of US$23.3bn. Year-to-date, SREITs have outperformed developers by 7.7%.
Key statistics
We estimate SREITs are trading at 6.2% 2010 yield (+424bp to 10Y government bonds). We expect SREIT distribution per unit (DPU) growth of 2.9% p.a. (2010- 14E), with hospitality and retail REITs leading growth at 6.0% and 4.0%, respectively. Our price target for the sector implies 10% upside from the current share price.
Corporate news: hospitality, MLT acquisition, Q2 reporting season
Singapore's tourism sector set a new record with inbound visitors crossing the one million mark in a single month. The July milestone marks eight consecutive months of record arrivals. Elsewhere in logistics, Mapletree Logistics Trust deepened its presence in Japan through a S$200m acquisition of three distribution centres in the Kanto region of Greater Tokyo. The acquisition raises its Japan contribution from 17.8% of gross revenue to 23.7%. Meanwhile, Savills Singapore expects serviced apartment rental rates for the high- and mid-tier segments to increase by 5-10% this year after sliding 22% in 2009. The Q2 reporting season has been strong so far, with around 80% of SREITs under coverage reporting earnings that are either in line with forecasts or higher than expected.
Buy retail REITs FCT, Starhill and Suntec, and CDL Hospitality REIT
We like CDL Hospitality Trusts (CDLH) as it is the most liquid proxy of the tourism recovery and Starhill Global REIT, Frasers Centrepoint Trust (FCT) and Suntec REIT as they are beneficiaries of improved retail consumer spending.