Category: PLife
Parkway Life – SGX
COMPLETION OF SETTLEMENT FOR EXERCISE OF OVER-ALLOTMENT OPTION
option granted by Parkway Investments Pte Ltd in connection with the initial public offering of Parkway Life Real Estate Investment Trust (“Parkway Life REIT”), Parkway Trust Management Limited, the Manager of Parkway Life REIT, wishes to announce that pursuant thereto, the Joint Lead Underwriters have today completed the settlement for the exercise of the over-allotment option of 11,097,000 Units granted by Parkway Investments Pte Ltd.
Pursuant to the exercise of the over-allotment option by the Joint Lead Underwriters, Parkway Investments Pte Ltd holds 213,257,000 Units (approximately 35.46% of the total issued Units
in Parkway Life REIT).
Citigroup Global Markets Singapore Pte. Ltd. and UBS AG, acting through its business group, UBS Investment Bank, were the joint global co-ordinators, joint bookrunners and joint lead
underwriters to the initial public offering of Parkway Life REIT.
Parkway Life – SGX
THE INITIAL PUBLIC OFFERING (THE “OFFERING”) OF UNITS (THE “UNITS”) IN PARKWAY LIFE REAL ESTATE INVESTMENT TRUST (THE “REIT”)
UBS AG, acting through its business group, UBS Investment Bank, as stabilising manager designated in connection with the initial public offering of the REIT, wishes to announce that it has as of 6 September 2007 ceased to undertake any stabilisation action.
UBS AG, acting through its business group, UBS Investment Bank has exercised the over-allotment option granted by Parkway Investments Pte Ltd in part on 6 September 2007, in respect of 11,097,000 Units, solely for the purposes of covering the balance of the 11,097,000 Units which had been overallocated in connection with the Offering, and which were not covered by purchases made under the price stabilising action.
Source : SGX
Parkway Life – SGX
STABILISING ACTION
UBS AG, acting through its business group, UBS Investment Bank, as stabilising manager designated in connection with the Offering, wishes to announce that it has purchased a total of,
- 2,458,000 Units at a price range of S$1.23 to S$1.24 per Unit on 03 September, 2007. Source : SGX
- 4,011,000 Units at a price of S$1.21 per Unit on 31 August, 2007. Source : SGX
- 1,000,000 Units at a price of S$1.20 per Unit on 30 August, 2007. Source : SGX
- 3,000,000 Units at a price range of S$1.18 to S$1.19 per Unit on 29 August, 2007. Source : SGX
- 1,731,000 Units at a price of S$1.19 per Unit on 28 August, 2007. Source : SGX
- 6,000,000 Units at a price range of S$1.18 to S$1.19 per Unit on 24 August, 2007. Source : SGX
- 13,032,000 Units at a price range of S$1.19 to S$1.27 per Unit on 23 August, 2007.
Source : SGX
Note : 43,329,000 Shares Available for Stabilising Action (for 1 mth)
Parkway Life – SGX
Pursuant to Regulation 3(13) of the Securities and Futures (Market Conduct) (Exemptions) Regulations 2006, UBS AG, acting through its business group, UBS Investment Bank, as stabilising
manager designated in connection with the Offering, wishes to announce that it has purchased a total of 1,731,000 Units at a price of S$1.19 per Unit on 28 August, 2007.
REITs – UOBKH
Mixed Performances In Turbulent Times
Growth was 1H07 theme. For the most part of this year, growth has been the main theme of the real estate investment trust (REIT) sector. The best-performing REITs for 1H07 were high-growth REITs such as CapitaRetail China Trust (CRCT), Capital Mall Trust (CMT) and CDL Hospitality Trust which saw returns in excess of 40%. As the market has turned cautious with the bottoming out of interest rates in April and May, most REITs have fallen from their highs in May and June. The recent correction has resulted in the decline of most REITs.
Boring REITs offer capital protection. In turbulent times, the market’s appetite for risk falls sharply and risk premiums shoot up. The focus then shifts from growth to capital protection and income preservation. Investors should consider boring REITs. Though less exciting, they have the lowest growth premiums built into their stock prices. We look for REITs with low price-to-book values for capital protection and high-yield REITs for income preservation. In addition, we prefer REITs with a greater focus on the Singapore economy given the latter’s safe haven status. ParkwayLife REIT (Parkway) and Macquarie MEAG Prime REIT (MMP) stand out in terms of yields and price-to-book ratios.
Avoiding logistic REITs for the time being. With slower asset appreciation and rental reversion, REITs focusing on the logistics segment rely on acquisitions to drive growth. As risk premiums go up, the increase in cost of capital makes it more expensive to fund new acquisitions on yield-enhancing terms.
Buying opportunities for the brave. The current market turbulence may represent an opportunity to pick up some high-quality REITs at depressed prices. For the bottom-fishing investor, we recommend CapitaCommercial Trust (CCT), K-REIT Asia (K-REIT), CRCT and CMT for their ability to grow organically and via acquisitions. As the market recovers, these higher-quality REITs are likely to be the first to stage a rebound. As seen in the market rebound this week, these REITs had the bigger price appreciation.