REIT Oracle

Keppel DC Buys Chinese Data Centre

Keppel DC Reit continues its expansion and announces the acquisition of a data centre in Guangdong, China, for RMB 635.9 million (about S$132 million):

The property will be fully leased back to Bluesea on a triple net basis for 15 years. With a gross floor area of approximately 20,595 sqm (221,689 sq ft), the seven-storey data centre is designed in accordance with the Code for Design of Data Centre Grade A GB, where Grade A is the highest standard for data centres in China. Situated within the Bluesea Intelligence Valley Mega Data Centre Campus, the facility is the first of six data centre buildings to be completed. As part of this agreement, Keppel DC REIT will have the right of first refusal to acquire the remaining five data centres within the campus.

The manager expects the transaction to be yield accretive and completed in the third quarter of 2021.

CDL Hospitality Looking to Diversify

It's an understatement to say that the hospitality REITs have been badly hurting lately, with the sector now being 18 months in deep coma. In order to be less reliant on foreign visitors, the management of CDL Hospitality Trust is now announcing its desire to diversify by adding "other lodging facilities and properties used for rental housing, co-living, student accommodation and senior housing" to its principal investment strategy.

First REIT Sells Its Korean Property

Despite suffering heavily from its lack of diversification and excessive dependence on its main tenant, leading to a painful lease renegociation and rights issue, First REIT is announcing the sale of its single South Korean property. The asset, Sarang Hospital in Yeosu City, is being divested for about US$4.52 million:

The Divestment is not expected to have any material impact on the net tangible assets or distributions per unit of First REIT and its subsidiaries for the financial year ending 31 December 2021.

Sabana REIT to Drop Shari'ah Compliance

Sabana Shari'ah Compliant Industrial REIT continues its transformation by dropping the Shari'ah Compliance, effectively also changing its name to Sabana Industrial Real Estate Investment Trust. The change is expected to be effective in October.

Parkway Life REIT and IHH Healthcare Sign Deal

The health-care focused REIT and its main tenant are extending their cooperation:

PARKWAY Life Real Estate Investment Trust (Reit) and IHH Healthcare Berhad are extending their collaboration for another 20 years, with Parkway Life Reit also injecting up to S$150 million in renewal capital expenditure, and receiving the right of first refusal (ROFR) for Mount Elizabeth Novena Hospital.

Parkway Life Reit trustee HSBC Institutional Trust Services (Singapore) has entered into new master lease agreements for Mount Elizabeth Hospital, Gleneagles Hospital and Parkway East Hospital with Parkway Hospitals Singapore Pte Ltd, a unit of IHH Healthcare unit Parkway Holdings.

Ascandas India to Invest in Data Centre Project

Ascendas India REIT is announcing an investment in a new data centre in Navi Mumbai, India. Expected to be delivered from Q2 2024 (for phase 1), the project of about S$216.6 million will be built on 2.7 hectare of leasehold land.

Parkway Life REIT Buys Two Japanese Nursing Homes

Parkway Life REIT is announcing further operation in Japan with the purchase of two nursing homes, one in Fukuoka City (Fukuoka Prefecture) and another in Adachi City (Tokyo Prefecture). With a total consideration of ¥4,100 million (S$49.4 million), the purchase is yield accretive (Net Property Yield of 5.7%).

The acquisition of the Properties will enhance PLife REIT's earnings resilience with long, stable master lease term as the REIT enters into fresh 20-year master lease agreement for each of the Properties. These are expected to improve the weighted average lease expiry (“WALE”) (by gross revenue) for PLife REIT's entire portfolio from 5.22 years to 5.61 years.

Keppel REIT Sells Australian Property

Keppel REIT is announcing the sale of its 50% stake in 275 George Street in Brisbane, Australia, for A$275 million:

Completed in 2009, 275 George Street is a 31-storey freehold office building located in Brisbane’s central business district with 41,720 sm of net lettable area. The development has a committed occupancy of 90.6% as at 31 March 2021. Its principal tenants include Telstra Corporation and the Shell-operated Queensland Gas Company.

The transaction is done at about 7.8% above the last valuation done on 31 Decembre 2020.

Suntec Sells Some, Buys Some

Suntec REIT is busy tweaking its portfolio with the announcement of both:

• The sale of about 7,292 m² of strata office units in his flagship property, Suntec City. Representing roughly 1.9% of the share value of the entire property, it is sold for S$197 million, or about 8.9% about independent valuation.
• The acquisition of a British grade-A office, The Minster Building in the City of London. The 999-year leasehold property will be taken over for £353 millions (about S$667 million), and comes with a 96.7% occupancy and long WALE of 12.3 years.

The management expects the operation to be both DPU accretive by 3.6% and NAV accretive by 0.7%.

Ascott REIT Issues Notice of Forfeiture to Park Hotel Tenant

Ascott REIT is having issues with its tenant at Park Hotel Clark Quay (Singapore):

Under the Notice issued today, the Tenant is required to make payment of the total sum of S$5,922,268.89 which is outstanding from the Tenant under the Master Lease as of 25 June 2021, by 5 p.m. on 30 June 2021, failing which Ascott Reit will take steps to repossess the Property and liaise with the Tenant to ensure a smooth handover of the Property and the hotel operations, and the Master Lease will then be terminated.