Category: ESR

 

Cambridge
PRESS RELEASE

CIT RECEIVES STRONG SUPPORT FROM UNITHOLDERS FOR ITS EQUITY FUND RAISING

Singapore, 25 September 2007 – Cambridge Industrial Trust Management Limited (“CITM”), the manager of Cambridge Industrial Trust (“CIT”), is pleased to announce that the unitholders of CIT (“Unitholders”) have approved the issue of new units (the “New Units”) in CIT to raise gross proceeds of approximately S$193.9 million (the “Equity Fund Raising”). Three other resolutions have been passed at CIT’s extraordinary general meeting held this morning, including the approval of an interested party/person transaction (under the Property Fund Guidelines and the SGX-ST Listing Manual respectively), being the proposed acquisition of 1 Tuas Avenue 3 from C&P Asia Warehousing Pte Ltd (“C&P”). C&P is an indirect wholly-owned subsidiary of CWT Limited.

CIT will soon undertake an international roadshow in connection with its Equity Fund Raising, which will include meeting institutional investors in the United States. CIT believes that it will be the first Singapore REIT to offer its units into the United States in reliance of Rule 144A of the U.S. Securities Act of 1933. The proceeds will be used for the acquisition of 1 Tuas Avenue 3 and five other properties in Singapore, namely, 9 Bukit Batok Street 22, 7 Ubi Close, 120 Pioneer Road, 48 Toh Guan Road East (Enterprise Hub) and 23 Woodlands Terrace.

Following the EFR, CITM expects an annualised yield of 7.0% for 2007 and a projected yield of 7.2% for 2008(1). Mr Wilson Ang, CEO of CITM, said “CITM is very pleased to have the backing of CIT’s unitholders for our acquisitions and financing plans. We will be commencing our roadshow shortly, with a view to completing our offering before the end of October 2007”.

(1) Based on an illustrative issue price for the New Units of S$0.80 per unit and various assumptions contained in CIT’s circular to Unitholders dated 6 September 2007 for the forecast period from 18 September 2007 and ending 31 December 2007 and for the projection year from 1 January 2008 and ending 31 December 2008.

September 26, 2007 ESR No Comments »

Cambridge – Daiwa

CAMBRIDGE, Daiwa remains OUTPERFORM with target price $1.06 (from $0.98)

– We maintain our 2 (Outperform) rating for Cambridge Industrial Trust (Cambridge) ahead of its S$193.9m equity fund-raising exercise, announced on 6 September. With the recent unit-price stability (and even a mild recovery) and a higher sustainable leverage-ratio assumption, we have revised up our distribution-per-unit (DPU) forecasts and raised our six-month target price, based on our RNG valuation method, to S$1.06 from S$0.98.

– The equity fund raising, subject to unitholders’ approval at an Extraordinary General Meeting (EGM) scheduled for 25 September, will be through a private placement, which management expects to be completed by the end of October. The funding will be for acquisitions announced already, which comprise 1 Tuas Avenue 3, 9 Bukit Batok Street 22, 7 Ubi Close, 120 Pioneer Road, 48 Toh Guan Road East, and 23 Woodlands Terrace. We have already incorporated the estimated contributions from these target properties into our forecasts.

– We have not changed our acquisition assumption of S$500m for 2007, so the only change to our forecast lies in our equity-financing assumption. We now assume that Cambridge will raise the announced S$193.9m for 2007 (from our previous assumption of S$330m). The lighter-than-expected fund raising would leave it with an estimated leverage ratio of 48.4% at the end of the year, much higher than the estimated year-end leverage of 34.8%, based on our previous assumption. Instead of raising enough equity to meet its financing requirements up to late 2008, we now assume that Cambridge’s financing strategy will be to raise enough equity to tide itself over until early-to-mid 2008, when we expect another major equity financing exercise.

– With the change in our equity-financing assumption and the recovery of its unit price (we have raised our placement-price assumption to S$0.78, from S$0.75 previously) since our previous report (see Yield screams louder, published on 20 August), we have revised up our DPU forecasts by 3.0% for 2007, 6.0% for 2008 and 10.5% for 2009. We caution that our DPU forecasts are highly sensitive to price assumptions (due to their direct impact on the number of units outstanding) for future fund raising.

– We have raised our six-month target price, based on our RNG valuation method, to S$1.06 from S$0.98, due to our higher assumptions for the placement price and recurrent-leverage ratio (loan to asset) of 45% (from 40% previously).

September 13, 2007 ESR No Comments »

Cambridge : SGX

Cambridge Industrial Trust Management Limited issues Circular to Unitholders relating to, among other things, the acquisition of six Target Properties by Cambridge Industrial Trust

• CIT to issue New Units for a private placement to raise up to S$193.9 million to fund the acquisition of the Target Properties

• Property portfolio expected to increase 60.7% in value to S$879.8 million with 40 properties as compared to S$547.4 million with 27 properties since Initial Public Offering (“IPO”)

• Forecast Period 2007 DPU (annualised) enhanced by 9.4%1 vs IPO 2007 Projection DPU of 5.12 cents

• Projection Year 2008 DPU at 5.799 cents, an increase of 3.5% over Forecast Period 2007 DPU2

• CIT’s Aggregate Leverage to be reduced from 48.2%3 to 38.1%3

1 Assumes completion of the Equity Fund Raising, completion of the acquisitions of the Target Properties and the Natural Cool Building and a private placement issue price of S$0.80.

2 Assumes completion of the Equity Fund Raising, completion of the acquisitions of the Target Properties and the Natural Cool Building and a private placement issue price of S$0.80.

3 Estimated as at 31 August 2007 based on CIT’s existing portfolio of 33 properties.

3 Computed based on forecast net borrowings and total assts of CIT as at 31 October 2007, assuming the completion of the Equity Fund Raising, and the acquisition of the six Target Properties and Natural Cool Building, bringing CIT’s portfolio from 33 to 40 properties.

Extracts of Press Release

The increased portfolio size is expected to provide CIT with a stronger platform for future acquisition growth. With the increased number of properties since IPO, CIT is pleased to announce that its DPU is expected to increase by 9.4%, from CIT’s IPO 2007 Projection DPU (of 5.12 cents, obtained from CIT’s prospectus dated 14 July 2006) for the CIT’s initial portfolio, to 5.604 cents (on an annualised basis) for the forecast period from 18 September 2007 to 31 December 2007 (the “Forecast Period 2007”) for the Enlarged Portfolio. Based on CIT’s Enlarged Portfolio, the projected DPU for the financial year ending 31 December 2008 is approximately 5.799 cents, an increase of 3.5% over the forecast DPU (annualised) for the Forecast Period 2007.

Mr Wilson Ang, Chief Executive Officer of CITM, said, “The completion of these properties will bring our property portfolio under management from S$689.4 million to S$879.8 million and increase total Unitholders’ distributions. The Equity Fund Raising will reduce our gearing ratio from 48.2% to 38.1% and give us more acquisition capacity to grow. After our planned S$193.9 million fund raising, CIT’s distribution per unit to Unitholders will be enhanced by 9.4% for 2007 compared to our IPO projections and we expect further growth of 3.5% in 2008. Based on our Projection Year 2008 DPU of 5.799 cents and an illustrative issue price of S$0.80, CIT offers investors an attractive yield of 7.2%.”

Source : SGX

September 7, 2007 ESR No Comments »

Cambridge – SGX

APPROVAL IN-PRINCIPLE FOR THE LISTING OF NEW UNITS

Cambridge Industrial Trust Management Limited, as manager of Cambridge Industrial
Trust (“CIT”, and manager of CIT, the “Manager”), is pleased to announce that approval in-principle has been obtained from the Singapore Exchange Securities Trading Limited (the “SGX-ST”) on 4 September 2007 for the listing and quotation of up to 285,119,729 new units in CIT (the “New Units”) on the Main Board of the SGX-ST which are proposed to be issued under an equity fund raising which is proposed to be carried out by CIT (the “Equity Fund Raising”).

The purpose of the Equity Fund Raising is to raise gross proceeds of up to approximately S$193.9 million 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.

The SGX-ST’s approval in-principle is not an indication of the merits of the Equity Fund Raising, the New Units or CIT.

Details of the Equity Fund Raising will be set out in a circular (the “Unitholders Circular”) which will be dispatched to the unitholders of CIT shortly for the purpose of seeking their approval for the proposed acquisition and lease of 1 Tuas Avenue 3, the proposed issue of New Units under the Equity Fund Raising, the proposed placement of New Units to the directors of the Manager and the proposed general mandate for the issue of new Units.

Source : SGX

September 5, 2007 ESR No Comments »

Cambridge – SGX
APPOINTMENT/RESIGNATION OF NON-EXECUTIVE DIRECTOR AND ALTERNATE DIRECTOR

The Board of Directors of Cambridge Industrial Trust Management Limited, the Manager of Cambridge Industrial Trust, (the “Company”) is pleased to announce the following Board changes with effect from 31 August 2007:

  • The appointment of Mr Tadashi Yamaguchi as a Non-Executive Director of the Company;
  • The appointment of Mr Yasuhiro Nakano as Alternate Director to Mr Tadashi Yamaguchi;
  • The resignation of Mr Takayuki Kawashima as a Non-Executive Director of the Company; and
  • The cessation of Mr Tetsuya Karasawa as Alternate Director to Mr Takayuki Kawashima.
Mr Takayuki Kawashima has left the REIT division and moved onto another division in Mitsui & Co., Ltd. Mr Tadashi Yamaguchi is replacing him in the REIT division of Mitsui & Co., Ltd whereby Mr Yasuhiro Nakano has been appointed as Alternate Director to Mr Tadashi Yamaguchi. Mr Tetsuya Karasawa will relinquish his post as Alternate Director to Mr Takayuki Kawashima and remain as the Executive Director of Cambridge Industrial Trust Management Limited.
August 31, 2007 ESR No Comments »