REIT Oracle

Prime US REIT Acquires Sacramento Property

The manager of Prime US REIT is announcing the acquisition of Park Tower, an office building in Sacramento, California. The freehold property is a 24-storey Class A office with 5-storey of mixed us retail and parking. It comes with a high occupancy ratio of 92.2% and a WALE (by NLA) of 5.6 years.

The US$165.5 million purchase will be funded with the help of a private placement of about US$100 million, which will see the issuance of 129 million new units (an increase of 13% over existing base). The manager expects the complete operation to be DPU and NAV accretive.

Mapletree Logistics to Buy Kobe Property

Mapletree Logistics Trust is announcing the planned acquisition of an logistics centre in Kobe, Japan. The freehold property, completed last year, has a Net Lettable Area of 84,783 m², and occupancy rate of 99.7% and a WALE of 4.2 years.

The purchase price of about S$272.5 million (for a 98.47% interest) will be funded by debt, pushing the trust gearing to 39.0% (from 37.1%).

Dasin Retail Trust Shortening Mall's Opening Hours

Dasin Retail Trust has announced that they'll shorten the opining hours of their five malls to help fight the current coronavirus epidemic in China.

Sasseur Outlet Malls Temporarily Closed

Sasseur REIT is closing down its outlet malls as a temporary precautionary measure in response to the coronavirus epidemic currently developing in China. No re-opening dates have been announced yet.

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.