Category: MI-REIT
MIREIT – SGX
SGX-ST ANNOUNCEMENT
APPLICATION FOR THE LISTING OF NEW UNITS
MacarthurCook Investment Managers (Asia) Limited, as manager of MacarthurCook Industrial REIT (“MI-REIT”, and manager of MI-REIT, the “Manager”), wishes to announce that under the proposed equity fund raising described in MI-REIT’s announcement dated 21 December 2007 (the “Equity Fund Raising”), it currently intends to raise gross proceeds of indicatively up to S$200.0 million based on current market conditions and funding requirements. This figure is subject to change at the Manager’s absolute discretion.
The issue price of the new units in MI-REIT (the “New Units”) under the Equity Fund Raising will be determined after an accelerated book building process and will be announced by the Manager when fixed. The issue price of New Units is expected to be at no more than a 10.0% discount to the volume weighted average price for trades of units in MI-REIT (“Units”) done on Singapore ExchangeSecurities Trading Limited (the “SGX-ST”) for the full market day on which the purchase agreement in relation to the Equity Fund Raising is signed. If the trading of the Units is not available for a full market day, the volume weighted average price will be based on the trades done on the preceding market day up to the time the purchase agreement is signed.
Source : SGX
MI-REIT – SGX
APPLICATION FOR THE LISTING OF NEW UNITS
MacarthurCook Investment Managers (Asia) Limited (“MCKIM”), as manager of MacarthurCook Industrial REIT (“MI-REIT”), is pleased to announce that it has today submitted to Singapore Exchange Securities Trading Limited (the “SGX-ST”) an additional listing application in relation to new units of MI-REIT (the “New Units”) to be issued under a proposed equity fund raising by MI-REIT (the “Equity Fund Raising”), together with a draft circular to unitholders of MI-REIT (“Unitholders”) for the purpose of seeking Unitholders’ approval for the Equity Fund Raising (the “Unitholders’ Circular”).
The Manager intends to carry out the Equity Fund Raising in order to part finance the acquisition of certain properties which the Manager is in the process of sourcing as well as to part refinance certain loan facilities drawn down for the purpose of the acquisition of certain properties, with the balance of the proceeds to be utilised for refinancing MI-REIT’s other existing debt obligations and for other general corporate and working capital purposes.
The terms of the Equity Fund Raising, including the manner in which it will be carried out, are in the process of being finalised by the Manager and will be set out in the Unitholders’ Circular. The issue of the Unitholders’ Circular is subject to the approval of the SGX-ST for the Equity Fund Raising. The Manager will announce the receipt of the approval of the SGX-ST for the Equity Fund Raising once this has been received. The Equity Fund Raising is subject to the finalisation of the terms of the Equity Fund Raising as well as market conditions.
MI-REIT – SGX
MacarthurCook Investment Managers (Asia) Limited (“MCKIM Asia”), the Manager of MacarthurCook Industrial REIT (“MI-REIT”), refers to its announcement on 26 November 2007 in relation to the acquisition of a property known as the Asahi Ohmiya Warehouse, located at 1-398-3, 11, 13 Yoshinocho, Kita-ku, Saitama, Japan.
The Manager is pleased to announce that the acquisition was completed today.
Source: SGX
MI-REIT – Phillip
A String Of Purchases
Developments to-date. MI-REIT added 6 properties to its portfolio following our last report on 25 Oct.. Additionally, MIREIT made its first overseas foray into the Japanese industrial market with the purchase of the Asahi Ohmiya warehouse located in the Saitama Prefecture, in the Greater Tokyo area.
With the acquisition, MI-REIT effectively entered into a strategic alliance with Atlas Partners Japan (APJ), a Japanese real estate fund and asset management firm, as asset management of the property will be outsourced to APJ. This further strengthens MI-REIT’s presence in Japan as APJ will also source for acquisition opportunities and provide asset management support for MI-REIT’s future Japanese acquisitions.
Annual revaluations on six properties resulted in an increase of $9.8 million to book value. Together with an earlier revaluation carried out in September on another six properties, total revaluation added $47.6 million to its book over its initial value at listing. Including all annouced
acquisitions, MI-REIT counts 22 properties in its portfolio with an asset value of $646.9 million and average lease term to expiry of 6.64 years. All the acquisitions are expected to be funded by debt and this will bring gearing up to 39% for FY08.
MI-REIT will steer its portfolio towards an allocation of 50% in Singapore, 20% in Japan and the remainder spread across other Asian markets.
Valuation. With the 6 acquisitions, we raise our FY08 DPU assumption by 4.7% from 7.41 cents to 7.76 cents and a 3 years DPU CAGR of 9.78% At the closing price of $1.13, these translate to a yield of 6.7% for FY08 and 8.1% for FY09. We increase our 12 month forward fair value from $1.39 to $1.43. Cost of debt assumption is reduced slightly to 3.8% as the Japanese denominated borrowing has a lower cost of funding. Our projected earnings remain conservative as we do not factor in unannouced acquisitions. Maintain BUY.
MI-REIT – BT
MI-Reit acquires office, warehouse building for $25m
Powermatic will lease back the property for 5 years
MACARTHURCOOK Industrial Reit (MI-Reit) has signed an agreement to acquire an office and warehouse facility in the Tai Seng industrial precinct for $25 million.
Under the agreement, Powermatic Data Systems, which is listed on the Singapore Exchange, will lease back the property at 135 Joo Seng Road for five years with the option to extend for another five years. The lease will commence upon the completion of the acquisition, which is scheduled for February 2008.
The property was transacted at the initial yield of 7.3 per cent, and will be accretive to MI-Reit’s distribution per unit following completion, said MacarthurCook Investment Managers (Asia) Ltd (MCKIM), the manager of the Reit.
Chris Calvert, CEO of MCKIM, said: ‘We are pleased with the acquisition of 135 Joo Seng Road. The inclusion of SGX-listed Powermatic as one of our tenants further enhances our portfolio, of which approximately 70 per cent is comprised of SGX-ST listed companies or their subsidiaries.
‘This acquisition provides unitholders with the twin benefits of medium to long-term income stability and also the opportunity for capital and rental value growth, which will form the steadily increasing demand for quality office accommodation in the Tai Seng industrial precinct.’
The inclusion of the property in MI-Reit’s portfolio will further contribute to income stability through enhanced tenancy and property diversification, and reduced exposure to its largest tenant, UE Tech Park Pte Ltd, from 31.6 per cent to 29.4 per cent of portfolio income, MCKIM said.
With the latest acquisition, MI-Reit will have total investments of approximately $642.6 million in 22 properties.
It intends to finance the acquisition wholly with debt but may consider alternative means of funding as appropriate. Assuming 100 per cent debt financing, the acquisition will increase MI-Reit’s committed gearing level from 36.7 per cent to 39.5 per cent.