REIT Oracle

Mapletree Logistics to Buy South Korean Property

Mapletree Logistics Trust is announcing the planned acquisition of an industrial asset in Yongin-Icheon, South Korea. The freehold property, comprising four blocks of dry warehouses, has a total gross floor area of 30,485 m² and is currently leased with a WALE of 6.2 years with built-in annual rental escalations.

The purchase price of about S$41.4 million will be funded by debt. The transaction is expected to be DPU accretive, thanks to a Net Property Income yield of 5.5%.

CapitaLand Wants to Marry Two of Its Biggest REITs

The Singapore REIT market is in full consolidation swing, and CapitaLand is once again at the helm as it seeks to merge CapitaLand Mall Trust (CMT) and CapitaLand Commercial Trust (CCT) together. The plan, as explained by the published presentation, would see CCT unitholders receiving 0.72 CMT share and S$0.259 for each CCT unit they hold.

The operation is expected to be DPU accretive to unitholders of both trusts, as well as improve the risk profile of the combined entity. The resulting trust would be the largest REIT in Singapore and the third largest in the APAC region.

The merger will require a vote of unitholders of each trust and is expected to be completed by June 2020.

Elite Commercial REIT IPO Priced at £0.68

Elite Commercial REIT will list its units on the SGX at a GBP 0.68 per unit, hoping to raise £119.5 million to £131.2 million in the operation.

The IPO's Singapore public offer will run from Jan 28 to Feb 4, and is expected to raise "at least" £3.3 million to £3.9 million, equivalent to some 3 per cent of the total offering size, the term sheet stated.

Preliminary Prospectus for Elite Commercial REIT Released

Looking for an IPO on the Singapore market, Elite Commercial REIT has filed its preliminary prospectus. The trust will have 97 properties in the UK, valued at about 319.1 million GBP, all (except one) freehold and almost fully leased to the British government (more precisely the Ministry of Housing, Communities & Local Government for its JobCentre Plus).

It will be the first trust on the Singapore market trading and paying dividend in British Pounds.

Lippo Malls REIT Selling 2 Properties

Lippo Malls Indonesia Retail Trust has announced the sale of two Indonesian properties, Pejaten Village and Binjai Supermall, for the sum of S$124.3 million. This is a nominal 4.1% and 8.3% discount to their latest valuation.

The net divestment proceeds of approximately S$120.2 million will increase the Manager’s financial flexibility to fund growth through reinvestments, make distributions to Unitholders or pare down debt

Atrium REIT Acquires Shah Alam Factory

Atrium REIT has announced the acquisition of an industrial property in Shah Alam (Selangor, Malaysia), for RM45 million:

The purchase will be funded via 20% internally-generated funds and 80% borrowing, Atrium REIT said in a filing with Bursa Malaysia.

Mapletree Logistics to Sell Shanghai Warehouse

Mapletree Logistics Trust has entered into an agreement to sell a logistics facility in the Waigaoqiao Free Trade Zone in Pudong New District, Shanghai. The agreed price of RMB 330 million (approximately S$64.0 million) is 68% above the 31 March 2019 valuation.

Axis REIT Purchasing Property in Bukit Raja

Axis REIT has announced the acquisition of a 99 year leasehold property in Bukit Raja Industrial Area, comprising a double storey office building and two blocks of factory. Sold by the current occupant, Lion Steelworks, the transaction of RM37 million will be financed by debt and push the trust gearing ratio to 38.1%.

Cromwell REIT Buys 3 German Properties

Cromwell European REIT is still actively managing its portfolio as, 3 days after announcing the disposal of 12 properties, it is planning to buy 3 light industrial properties in Germany. Located around Stuttgart and freehold, they are fully leased with a WALE of 15 years and will cost a total of 40.9 € million.

Cromwell REIT Selling 65.7€ Million Worth of Properties

Cromwell REIT is announcing the disposal of 12 properties in Holland, France and Denmark for a total of 65.7€ million, a 4.1% premium to valuation. The trust expects the sale to increase NAV, occupancy and provide fresh capital for future yield-accretive acquisitions.