Author: tfwee
CMT – SGX
Singapore, 3 May 2007 – We refer to the article “URA okays 1.3m sq ft office space” published in the Business Times on 28 April 2007. In CapitaMall Trust’s (CMT) Initial Public Offering (IPO) Circular dated 28 June 2002, it was stated that Funan DigitaLife Mall (previously known as Funan The IT Mall) had only utilised 3.861 of its allowable Gross Plot Ratio of 7.0 and has an unutilised Gross Floor Area (GFA) of about 385,000 square feet.
In order to maximise the unutilised GFA at Funan DigitaLife Mall, CapitaMall Trust Management Limited (CMTML), as manager of CMT, has submitted a planning application to the Urban Redevelopment Authority (URA) and has earlier received URA’s provisional permission to erect a nine storey commercial building and for additions and alterations to the existing Funan Digitalife Mall.
However, CMTML is appealing to URA on an alternative waiver scheme so as to achieve a more efficient floor plate for the proposed development of an office block and to minimise disruptions to the retail tenants. Further details will be provided in due course upon finalisation of details with the URA.
MapleTree – BT
MapletreeLog in HK$780m HK property deal
MAPLETREE Logistics Trust has signed a conditional deal to buy a Hong Kong commercial property for about HK$780 million, or S$151 million. The acquisition, which is expected to be completed by June next year, is yield-accretive and has a pro forma effect on MapletreeLog’s distribution per unit for the financial year ended Dec 2006 of an additional 0.16 Singapore cents per unit. The properties include various warehouse units and carpark spaces, and a procurement agreement for 95 public lorry park spaces at Grandtech Centre in Shatin, New Territories.
The area is ‘a key cargo hub for China-linked businesses’ with ‘quick access via key railways and expressways to the Chinese border and the container port’, said Chua Tiow Chye, chief executive of MapletreeLog. He said the acquisition will be one of the trust’s top three in terms of revenue contribution. When all announced deals are completed, MapletreeLog’s portfolio value will reach $2.2 billion, up from $1.4 billion at the end of 2006, it said.
Suntec – BT
Suntec Reit’s Q2 net up 19.3%
SUNTEC Real Estate Investment Trust (Suntec Reit), which is controlled by Hong Kong tycoon Li Ka-shing, yesterday reported a 19.3 per cent increase in distributable income for its second quarter ended March 31, on the back of higher office rents.
The trust, based on Suntec City and other properties, said that distributable income came to $28 million for the three months ended March, up from $23.5 million for the same period a year ago.
The Reit’s distribution per unit rose 8.5 per cent to 1.97 cents, up from 1.81 cents. Net property income rose 10.3 per cent to $35.2 million, from $32 million for the previous corresponding period.
The Reit attributed the improved performance to higher office revenues from its Suntec City and Park Mall offices. For Suntec City, revenue was driven by both higher occupancy and increased rentals, said the Reit. Revenue from the property was also boosted by strata office space acquisitions.
‘Office rents continued to register double-digit growth rates in the first quarter of 2007 as vacancy in Grade A office space dropped further to 0.4 per cent from 0.8 per cent in the previous quarter,’ Suntec Reit said in a filing to the Singapore Exchange.
Office rents in Singapore are close to a 10-year high as demand continues to grow amidst limited supply. Market watchers expect the rent hikes to continue as supply is expected to remain tight at least until 2010 when several major office complexes are due to be completed.
In the meantime, Suntec Reit plans to continue boosting its portfolio. It said on Jan 30 that it plans to expand its commercial assets in Singapore by about 50 per cent to $3 billion in two to three years to benefit from the economic growth.
Its portfolio of investment properties was valued at $3.87 billion as at March 31, 2007, giving the trust a ‘revaluation surplus’ of $613.6 million. Suntec Reit’s shares fell 2 cents, or one per cent, to close at $2 yesterday. The share price has risen 9.9 per cent this year.
MapleTree – BT
MapletreeLog beats forecasts
MAPLETREE Logistics Trust (MLT), which owns warehouses and container depots in Singapore and abroad, said yesterday its distributable income for first-quarter 2007 grew 84.2 per cent to $15.3 million, from $8.3 million a year earlier.
The trust’s dividend per unit (DPU) rose 34.5 per cent to 1.48 cents, from 1.10 cents in Q1 2006. Distributable income was 8.5 per cent higher than forecast, while DPU was 7.2 per cent above the forecast. Net property income rose 128 per cent to $25.7 million.
Chua Tiow Chye, chief executive of MLT’s management team, attributed the performance to the 25 new properties acquired in the past year. The new acquisitions took the number of completed assets to 49 with a combined value of more than $1.5 billion.
Thirteen acquisitions are pending completion. Once they are completed, MLT will have 62 properties in its portfolio – 38 in Singapore, nine in Malaysia, six in Japan, six in Hong Kong and three in China.
Mr Chua said the trust is also exploring new markets such as Vietnam, India and South Korea. MLT hopes to have assets in Vietnam and South Korea by the end of this year. In India it has no assets lined up for acquisition and will work with its sponsor Mapletree Investments to build properties the trust can later acquire.
Right now, Singapore and Hong Kong together account for about 94 per cent of the trust’s gross revenue, with Japan, China and Malaysia making up the balance. Going forward, MLT expects more income contributions to come from Japan, China and Malaysia.
Mr Chua said the trust is confident of delivering its 5.69 cents DPU forecast this year on the back of a strong first quarter performance. MLT closed unchanged at $1.33 yesterday.