REIT Oracle

Eagle Hospitality Trust Pricing Its IPO at US$0.78

Hot on the heels of the IPO of ARA US Hospitality Trust, Eagle Hospitality Trust is another US-focused trust owning hospitality properties and seeking listing in the Singapore market.

Eagle Hospitality Trust (EHT) is also a business trust with stapled-securities listed in US Dollars, and has set its introduction price at $0.78.

EHT is a stapled group comprising Eagle Hospitality Real Estate Investment Trust (EH-Reit) and Eagle Hospitality Business Trust (EH-BT). It has an initial portfolio of 18 full-service hotel properties, with a total of 5,420 rooms and an aggregate valuation of about US$1.27 billion.

The assets span states such as California, Texas, Colorado, Utah, Georgia, Florida, New Jersey and Connecticut. Seventeen of the 18 assets are freehold.

The prospectus is available for reading and several bloggers are covering the IPO in depth.

AIMS APAC REIT Acquires Australian Property on Gold Coast

AIMS APAC REIT is announcing the purchase of the Boardriders APAC HQ in the suburb of Burleigh Heads, Queensland, Australia for A$38.46million (about S$36.92million). The property is occupied, sold and will be leased by wholly-owned subsidiaries of Boardriders, Inc., a company that designs, produces and distributes ready-to-wear apparel, footwear and accessories under brands such as Quiksilver, Billabong, Roxy, etc.

The Acquisition is expected to be predominantly funded from Australian dollar debt facilities in order to maintain a natural currency hedge on the Acquisition. AA REIT's aggregate leverage following the Acquisition will increase from 33.7% as at 31 March 2019 to 35.5% on a proforma basis, assuming Acquisition was fully funded by debt.

On completion of the Acquisition, AA REIT will own a total of 27 industrial properties, of which 25 properties are located throughout Singapore, a property located in Gold Coast, Australia and a 49% interest in a property located in Macquarie Park, New South Wales, Australia.

ARA US Hospitality Trust IPO Priced at USD $0.88

ARA US Hospitality Trust is listing its stapled securities in Singapore in a bid to raise USD $498 million. The trust owns and operates 38 hotel properties in the USA and priced each stapled unit at USD $0.88.

It has secured commitments for $116.5 million worth of the shares on offer from six cornerstone investors including Celine Tang, who is the managing director at property firm SingHaiyi Group, her husband, Singaporean businessman Tang Gordon, as well as DBS Bank Ltd, Credit Suisse AG, United Overseas Bank Ltd on behalf of their clients.

Trading is expected to start on May 9.

Second REIT IPO Planned for KBS

The Business Times reports that KBS Prime US Reit plans up to US$705 million IPO in June:

KBS Realty Advisors, the US-based real estate private equity firm which has been eyeing a second Reit listing in Singapore since last year, is reaching out to investors again with plans to list KBS Prime US Reit in June.

This would come after the succesful listing of Keppel-KBS US REIT.

Eagle Hospitality Trust Files for Listing in Singapore

Eagle Hospitality Trust, which owns 18 hotel properties in the USA, has filed for IPO in the Singapore stock market.

EHT comprises a REIT and business trust. The Singapore-based EH-REIT has an initial portfolio with 18 full service properties, comprising nine Upper Upscale hotels, five Upscale hotels, and four Upper Midscale hotels with a total of 5,420 rooms and an aggregate valuation of US$1.27b. For its initial portfolio, it expects a yield of 8.1%-8.2% in 2020.

Activist Fund Urges Singapore REIT Merger to Boost Value

Bloomberg reports that Quarz, an activist fund, is pushing for Ascott REIT and Ascendas Hospitaly REIT to merge:

Ascendas Hospitality Trust and Ascott Residence Trust should join forces to boost shareholder value and avoid potential conflicts following a separate deal in January that will see CapitaLand Ltd. gain ownership of the managers of both REITs, according to Quarz Capital Management Ltd.

An Ascott spokesperson said the overlapping investment mandates of both had been noted. “We shall be considering various options with the objective of maximizing value for our unit holders and will make an announcement when there are material developments.”

Sasseur REIT Makes First Acquisition Since IPO

Sasseur REIT makes its first purchase since being listed by acquiring shop units at Hefei Outlets. With a total gross floor area of 6,133 m². the tenanted units have a WALE of 5.4 years. The transaction of RMB 98.3 million (about S$19.6 million) will be funded by existing cash, and the manager expects the acquisition to be both DPU and NAV accretive.

Keppel REIT Makes Foray in Korea With Seoul Office Purchase

Keppel REIT is purchasing an office property in the South Korean capital:

Keppel REIT Management Limited, as manager of Keppel REIT, wishes to announce that Keppel REIT had entered into an agreement with a value-add strategy fund managed by PGIM Real Estate to acquire an approximate 99.38% stake in T Tower, a freehold Grade A office building located in Seoul's central business district (CBD), at an agreed property value of KRW 252.6 billion3 (approximately S$301.4 million4). The remaining 0.62% stake5 will be acquired by a wholly-owned subsidiary of Keppel Capital Holdings Pte. Ltd. (Keppel Capital). Concurrently, Keppel Investment Management Co., Ltd. (Keppel Investment Management), the asset management arm of Keppel Capital in South Korea, will be appointed the local asset manager for the property.

The purchase is to be funded by debt and will be DPU-accretive according to the manager.

Accordia Golf Trust Sells Course

Accordia Golf Trust has agreed to sell its Village Higashi Karuizawa Golf Club, in the Gunma Prefecture, Japan. The 18-hole course, which opened in 1978, will be sold for ¥200,000,000 (or about S$2.4 million), significantly more than the valuation of ¥27,500,000 done on 31 December 2018.

Mapletree Logistics Sells 5 Japanese Properties

Mapletree Logistics Trust keeps cycling its portfolio by divesting from 5 warehouses in Japan:

After evaluating all viable options and taking into consideration the Properties' olderwarehouse building specifications, limited future income growth and lack of redevelopment potential, the Manager assessed that divesting the Properties at the offered price would be desirable in the interests of MLT's unitholders

The transaction of a total of S$213.3 million is 21% above the latest appraised value of the properties.