Category: ESR
Cambridge – DMG
– Results in line with projections. Cambridge posted Q3 distributable income of $8.8m (DPU 1.7cts), +10% qoq and 29% ahead of its IPO forecast, on a 25% yoy and 8% qoq rise in revenue to $13.5m. The improved results were due to additional contributions from new acquisitions. For the 9M, distributable bottomline came in at $24.2m or 72% of our full year forecast. – Added 6 properties to portfolio since beginning 07. For the 9M07, the group had acquired 6 buildings valued at $137m, bringing its portfolio to 33 properties. New contributions from these properties had boosted bottomline. It has another $190.5m of new purchases which are expected to be completed over the next 1 month. In all, these assets are expected to add about $25m rental revenue annually to topline. – A further $94m of MOUs. The key driver to DPU growth is new acquisitions. In this respect, the group has expanded its portfolio by $328m with another $94m of MOUs. Given the increasingly competitive domestic acquisition environment, CIT also plans to venture into Malaysia and China and could look to possibly invest offshore over the next 12 months. Recent $193.9m cash raising exercise via an issue of 276.9m new units has lowered gearing to 38% and has freed up $480m of debt headroom for the group to seek new buys. – Maintain Buy. Share price has retraced 26% from the recent high and at present, offers significant value in view of its stable and secure income profile and long lease life. FY08 yield of 8.6% is amongst the highest with the S-reit sector. Our price target of $0.94 is conservative and is based on discounting cashflow from existing portfolio and has not imputed earnings accretion from potential new purchases. Reiterate buy with potential upside of 33%.
Cambridge – SGX
ISSUE OF 276,973,000 NEW UNITS IN CAMBRIDGE INDUSTRIAL TRUST
Issue of 276,973,000 New Units
Further to its announcement on 2 October 2007 in relation to the launch of the Global Offering, Cambridge Industrial Trust Management Limited, as manager (the “Manager”) of Cambridge Industrial Trust (“CIT”), wishes to announce that it has today issued 276,973,000 new Units (the “New Units”) in CIT. With this issue of 276,973,000 New Units, the total number of units in CIT in issue is 792,278,653(1). The New Units will commence trading on the Main Board of the Singapore Exchange Securities Trading Limited at 2.00 p.m. on 18 October 2007.
Status of the New Units
The New Units will, upon issue, rank pari passu in all respects with the units in issue on 17 October 2007, being the day immediately prior to the date on which the New Units are issued, including the right to any distributions which may be paid for the period from 18 October 2007 to 31 December 2007 as well as all distributions thereafter.
(1) This includes the 801,493 new Units which were issued to the Manager on 12 October 2007 as settlement of 97% of the base fee element of the management fee payable to the Manager in respect of the initial portfolio of CIT comprising 27 properties from 1 July 2007 to 30 September 2007.
Source : SGX
Cambridge – SGX
CAMBRIDGE INDUSTRIAL TRUST’S GLOBAL OFFERING RECEIVES STRONG SUPPORT FROM INVESTORS
• Cambridge Industrial Trust successfully raises S$193.9 million through a Global Offering of New Units
• Global Offering approximately 1.6 times subscribed by over 50 institutional investors
• Trading of the New Units on the Main Board of the SGX-ST expected to commence at 2.00 p.m. on Thursday 18 October 2007
Cambridge Industrial Trust Management Limited, as manager of Cambridge Industrial Trust (“CIT”) (the “Manager”) is pleased to announce that the private placement of 276,973,000 New Units in CIT (the “New Units”) to institutional and other investors outside of the United States in reliance on Regulation S under the U.S. Securities Act of 1933 (the “Securities Act”) and to qualified institutional buyers within the United States in reliance on Rule 144A under the Securities Act (the “Global Offering”) has received strong support from investors. The Manager received indications of interest for approximately 1.6 times the total New Units offered, with over 30% of demand for the New Units coming from institutional investors domiciled in the United States. The Manager believes that CIT is the first Singapore REIT to offer new units into the United States in reliance on Rule 144A of the Securities Act.
Book-building for the Global Offering commenced on 1 October 2007 through CLSA Singapore Pte Ltd and Merrill Lynch (Singapore) Pte. Ltd. as joint bookrunners (“Joint Bookrunners”). Following a positive response to the Offering from over 50 institutional investors, the Manager together with the Joint Bookrunners has decided to offer the New Units at a price of S$0.70 per unit (“Global Offering Price”).
The Global Offering Price represents a discount of approximately 6.67% to the closing price of CIT’s on the Singapore Exchange Securities Trading Limited on 12 October 2007 of S$0.75.
For the financial year ending 31 December 2008, all Unitholders can expect to receive a distribution per unit of 5.542 cents1 . Based on the Global Offering Price of S$0.70 per New Unit, the projected 2008 yield is 7.9%.
Mr Ang Poh Seong, CEO of the Manager, said: “We are very pleased to receive strong support from new and existing investors in CIT. The offering was large at about 53.8% of CIT’s units in issue as at 31 July 2007, but the issue has still been a great success. With over 50 high quality investors participating in the offering, we are very pleased at the response to the Global Offering. Investors have shown confidence in our strategy and the long term growth potential of CIT. We will continue to grow our portfolio and will capitalise on the potential of the industrial property sector in Singapore and in Asia for the benefit of our unitholders”.
An aggregate of 276,973,000 New Units will be issued bringing the total number of Units in issue to 792,278,653. The New Units are expected to commence trading on the Main Board of Singapore Exchange Securities Trading Limited (“SGX-ST”) at 2.00 p.m. on 18 October 2007. The New Units will, upon issue and allotment, rank pari passu in all respects with the existing Units, including the right to any distributions which may be paid for the period from 18 October 2007, the date the New Units are issued to 31 December 2007, as well as all distributions thereafter. The New Units will not be entitled to participate in the distribution of any distributable income accrued by CIT prior to the date of issue of such New Units.
1 Based on the Global Offering Price and various assumptions contained in the offer information statement lodged with the Monetary Authority of Singapore on 1 October 2007 for the projection year from 1 January 2008 and ending 31 December 2008.
Source : SGX
Cambridge – Issue of units to manager in lieu of management fees
ISSUE OF UNITS TO MANAGER IN LIEU OF MANAGEMENT FEES
In relation to the initial public offering of units in Cambridge Industrial Trust, the Joint Global Coordinators were ABN AMRO Rothschild and CLSA Merchant Bankers Limited, and the Joint Lead Underwriters and Bookrunners were ABN AMRO Rothschild and CLSA Singapore Pte Ltd.
Cambridge Industrial Trust Management Limited (“CITM”), the Manager of Cambridge Industrial Trust (“CIT”), wishes to announce that 801,493 new units in CIT (“Units”) have been issued to CITM on 12 October 2007. The Units were issued at an issue price of $0.8099 per Unit, in lieu of the payment of 97% of the base fee (“Base Fee”) component of the management fee in respect of the initial portfolio of 27 properties to CITM for the period from 1 July 2007 to 30 September 2007.
The Base Fee is defined in the trust deed constituting CIT (the “Trust Deed”) as 0.5% per annum of the value of the deposited property. In accordance with the Trust Deed, the issue price was determined based on the volume weighted average traded price for a Unit for all trades done on the Singapore Exchange Securities Trading Limited, in the ordinary course of trading, for 10 business days immediately preceding the relevant business day.
The Manager has elected to receive 97% of the Base Fee in Units as disclosed in the section entitled “The Manager and Corporate Governance” on page 224 of CIT’s prospectus dated 14 July 2006 issued in connection with the initial public offering of Units.
Following the above issue of Units, the total Units in issue is 515,305,653 of which CITM’s holding is 3,851,099.
Cambridge – SGX
ANNOUNCEMENT
LAUNCH OF GLOBAL OFFERING
Introduction
At the extraordinary general meeting of unitholders of CIT (the “Unitholders”) held on 25 September 2007 (the “EGM”), Unitholders approved, inter alia, the resolution for the issue of new units in CIT in connection with the Global Offering. Pursuant to such resolution, Cambridge Industrial Trust Management Limited, as manager of CIT (the “Manager”), is proposing to issue up to 285,119,729 New Units so as to raise gross proceeds of approximately S$193.9 million in the manner described in the Offer
Information Statement lodged with the Monetary Authority of Singapore on 1 October 2007 to finance the acquisition of six properties, namely, 1 Tuas Avenue 3, 7 Ubi Close, 9 Bukit Batok Street 22, 120 Pioneer Road, Enterprise Hub(1), 23 Woodlands Terrace (including costs associated with such acquisitions) and to potentially retire part of CIT’s existing debt obligations, with the balance of the proceeds to be utilised for general corporate and working capital purposes.
CLSA Merchant Bankers Limited and Merrill Lynch (Singapore) Pte. Ltd. (“Merrill Lynch”) have been appointed as joint global co-ordinators (the “Joint Global Coordinators”) for the Global Offering and the joint bookrunners for the Global Offering are CLSA Singapore Pte Ltd and Merrill Lynch (the “Joint Bookrunners” and together with the Joint Global Co-ordinators, the “Joint Global Co-ordinators and Joint Bookrunners”).
The offering price for each New Unit will be determined by the Joint Bookrunners in consultation with the Manager after a book-building process, and will be announced by the Manager thereafter via SGXNET.
The Global Offering
The New Units under the Global Offering will be privately placed to institutional and other investors by the Joint Global Co-ordinators and Joint Bookrunners.
Rationale for the placement of New Units to the Manager’s Directors and their immediate family
At the EGM, the Unitholders approved the placement of New Units to the directors of the Manager (the “Directors”) and their immediate family members as part of the Global Offering.
The Manager is of the view that a Director and his immediate family members should not be treated differently from any other Unitholder to whom New Units may be placed pursuant to the Global Offering, and should be given the opportunity to apply for additional New Units under the Global Offering since the other such Unitholders may also apply for additional New Units under the Global Offering.
Placement of New Units to the Relevant Institutional Investors under the Global Offering
The Manager has obtained a waiver of Rule 812(1) of the Listing Manual from the SGXST for the placement of New Units to certain institutional investors which each holds more than 5.0% of the Units in CIT (the “Relevant Institutional Investors”) under the Global Offering, subject to, inter alia, the following conditions in respect of the waiver from the SGX-ST that (i) the Manager certifies that it is independent of the Relevant Institutional Investors and (ii) the Manager announces any such placement.
Rationale for the placement of New Units to the Relevant Institutional Investors
The Manager is of the view that the Relevant Institutional Investors should not be treated differently from any other Unitholder to whom New Units may be placed pursuant to the Global Offering, and should be given the opportunity to apply for additional New Units under the Global Offering since the other such Unitholders may also apply for additional New Units under the Global Offering.
Cumulative Distribution and Status of the New Units
The next distribution in relation to CIT’s distributable income (the “Distributable Income”) was originally scheduled for the period from 1 July 2007 to 30 September 2007.
However, in conjunction with the Global Offering, the Manager has declared, in lieu of the scheduled distribution, a distribution of the Distributable Income for the period from 1 July 2007 to and including the day immediately prior to the date on which New Units are issued under the Global Offering (the “Cumulative Distribution”) which is on or around 18 October 2007. The Manager will announce the books closure date for the Cumulative Distribution shortly. The actual quantum of the distribution per existing Unit under the Cumulative Distribution will be announced after the management accounts of CIT for the relevant period has been finalised.
The New Units will, upon issue, rank pari passu in all respects with the Units in issue on the day immediately prior to the date on which the New Units are issued, which is expected to be on or around 18 October 2007, including the right to any distributions which may be paid for the period from the day the New Units are issued to 30 September 2007 as well as all distributions thereafter.
For the avoidance of doubt, the New Units issued in connection with the Global Offering will not be entitled to participate in the Cumulative Distribution.
Listing of the New Units
The indicative date and time of listing of the New Units on the SGX-ST is at 9.00 a.m. on 19 October 2007.
(1) Refers to 120 strata units in the building which is constructed on Lot 7659A of Mukim 5 at 48 Toh Guan Road East, Singapore 608586.
Source : SGX