REIT Oracle

Keppel DC REIT Buys Into Tokyo Data Centre

Keppel DC REIT and its sponsor, Keppel, are jointly acquiring Tokyo Data Centre 1, in Tokyo, Japan:

The total purchase consideration of 23.4 billion yen (S$195.3 million) stands at a 2.5 per cent discount to the property’s valuation of 24 billion yen, said the Reit manager on Thursday (Jul 11).

The deal represents Keppel DC Reit’s first acquisition in Japan, which its manager’s chief executive, Loh Hwee Long, highlighted as one of the largest and fastest-growing data centre markets in Asia.

The Business Times: Singapore Needs Reforms to Revive Its Reits

The Business Times publishes an op-ed on fixing the laggard performance of Singapore's REITs:

The twin post-pandemic shocks – elevated interest rates, and a worldwide shift towards work from home – have damped investor sentiment. Some of the gloom may lift as the US Federal Reserve begins to ease monetary policy, but governance of Singapore Reits could hold back the much-anticipated recovery from reaching its full potential. That is why reforms must take centre stage.

Paragon REIT Selling The Rail Mall

Paragon REIT is announcing the divestment of The Rail Mall for a S$78.5 million consideration:

Proceeds from the divestment will be used to pare down outstanding debt obligations, finance potential acquisitions and asset-enhancement initiatives, and/or make distributions to unit holders, said the manager.

The Rail Mall, located in Upper Bukit Timah Road, has nearly 50,000 sq ft of net lettable area, and sits on a site sold by the state with a 99-year leasehold tenure from March 1947.

This leaves a balance of 21 years and eight months. The property was valued at $62 million as at Dec 31, 2023.

Mapletree Logistics Sells Chinese Warehouse

Mapletree Logistics Trust is announcing the sale of a warehouse in China:

The sale consideration is estimated to be RMB70.5 million ($13.1 million), 0.7% above the property’s valuation of RMB70 million as at March 31.

Comprising a single-storey warehouse with a four-storey office and a two-storey warehouse, Mapletree Xi’an Logistics Park has a building age of almost 20 years and a net lettable area of approximately 22,876 sq m.

CapitaLand Ascott Buys Remaining 10% Stake in South Carolina Property

CapitaLand Ascott Trust is acquiring the remaining 10% stake it didn't own in a student housing property for the University of South Carolina, US:

On June 4, its managers said they expect the acquisition to generate an earnings before interest, taxes, depreciation and amortisation (Ebitda) yield on total development costs of about 7 per cent.

ARA US Hospitality Manager Sold to Acrophyte AM

The manager of ARA US Hospitality REIT has been sold by ESR Group to Acrophyte Asset Management:

In the same announcement, ARA Real Estate Investors 23, held by ESR, has also entered into a sale and purchase agreement to divest its 19% stake of 110.2 million stapled securities in ARA US Hospitality Trust to Acrophyte Limited, an entity held by Tang Jialei and Tang Jialin.

Acrophyte Pte Ltd, which used to be called Chip Eng Seng Corp, has been appointed the new sponsor of ARA US Hospitality Trust.

Sponsor of Cromwell REIT Sells Entire Stake to Stoneweg Group

The sponsor of Cromwell REIT, Cromwell Property Group, has sold its entire stake of 27.79% to the Stoneweg Group for 280 million Euro:

CEREIT will remain listed on the Singapore Exchange and does not expect changes to its independent directors and management team.

Elite Commercial REIT Renamed to Elite UK REIT

With effect May 16, 2024, Elite Commercial REIT name is being changed to Elite UK REIT. SGX and Bloomberg ticker codes remain unchanged.

CapitaLand India to Acquire IT Buildings in Hyderabad, India

CapitaLand India Trust is annoucing the acquisition of a portfolio of IT buildings in Hyderabad (India) from developer Phoenix Group:

The buildings are in Hitec City, which the trustee-manager highlighted as a “major IT and office hub in Hyderabad where many large multinational companies are located”.

Based on pro forma estimates, acquiring these buildings would have resulted in a financial year 2023 distribution per unit of 6.47 cents, up from 6.45 cents.

Keppel DC Sells Australian Property for a$174 Million

Keppel DC REIT is announcing the divestment of Intellicentre Campus, a data centre in Sydney, for A$174 million:

On Tuesday (Apr 16), Keppel DC Reit’s manager said the agreed value represents a 35.4 per cent premium to the property’s FY2023 valuation of A$128.5 million, and is 148.6 per cent higher than the Reit’s original investment of A$70 million in the asset.