REIT Oracle

Cromwell REIT Completes 100M € Private Placement

Cromwell European REIT has completed a private placement and raised 100 million Euros, issuing 232.6 million new units at a price of 0.43 € per unit.

Roughly a third of the proceeds will be used to replenish working capital, following the Reit's recently completed 52.6 million euro acquisition of a logistics park in Italy.

Another 64 million euros will partially fund the Reit's acquisition of 11 properties in the Czech Republic and Slovakia, which is expected to complete before March 31, 2021.

Ascendas India Buys Hyderabad Property

Ascendas India Trust is announcing the acquisition of aVance 6, a building within HITEC City, Hyderabad, for the price of about S$92.03 million. Built on freehold land, it is 98.3% leased to Amazon.

Mapletree Logistics Buys 5 Korean Properties

Mapletree Logistics Trust is acquiring five logistics assets in South Korea.

Assets

The five properties, all located south of Seoul, are all freehold and 100% occupied, with a WALE of 1.7 year and an NPI of 4.5%.

Financing

The S$334.8 million purchase is expected to be funded by debt, pushing gearing ratio of the trust to 38.9%.

Expectations

The manager expects the purchase to be yield accretive. This increase the trust exposure to South Korea from 15% to 25%.

Ascott Residence Sells Shanghai Property

Ascott Residence Trust is selling Somerset Xu Hui Shanghai, a serviced residence, for a total value of 1.05 billion yuan (about S$215.6 million):

The property's agreed value is 171 per cent above its book value, said the managers in a pre-market filing on Tuesday.

This is expected to improve the trust NAV but impact distribution negatively due to lower income.

Parkway Life REIT Sells Japanese Industrial Property

Parkway Life REIT is selling P-Life Matsudo in Japan, an industrial property, for about S$37.1 million:

It is expected to recognise an estimated gain of about S$5.1 million, as Parkway Life Reit originally purchased the property at S$33.2 million in 2008.

The divestment is not expected to have any material impact on the consolidated net tangible assets or distributions per unit for the financial period ended Dec 31, 2020.

Ascott Residence Buying Student Accomodation Asset

Ascott Residence Trust is announcing its first acquisition in the USA with the purchase of a student accommodation asset, the Signature West Midtown.

Asset

The Signature West Midtown is a purpose-built student accommodation in Atlanta, Georgia, completed in 2019. A freehold property, it has 525 beds across 183 units and is located close to Georgia Tech with facilities such as a swimming pool or a rooftop lounge. Occupancy stands at about 95% with an average length of stay of about a year.

Financing

The price of US$95 million (plus fees) will be paid by recycling divestment proceeds and debt.

Expectations

As the purchase is yield-accretive, distribution per unit is expected to be lifted by about 4.4% while having no impact on NAV.

AIMS APAC REIT to Acquire Sime Darby Business Centre in Singapore

AIMS APAC REIT is announcing the acquisition of the Sime Darby Business Centre in Singapore

Asset

The Sime Darby Business Centre is a showroom and business space at 315 Alexandra Road, Singapore. The light industrial facility is situated on a land area of 7,720 m² with 34.2 years left on its leasehold title. It has recently undergone a refurbishment program, with upgrades to the entry foyer and drop off canopy, common lift lobbies, walkways and toilets on each floor. It has a Net Property Income yield of 6.2%.

Financing

The $106.6 million operation (S$102 million price plus fees) will be financed by debt. Sime Darby Property Singapore Limited will leaseback 70% of the property for a period of 10 years with fixed annual rental escalation.

Expectations

The transaction is expected to increase the trust's WALE from 4.23 to 4.52 years, and push leverage to 39%. DPU is expected to increase, pro forma, from 9.50 to 9.98 cents per year.

27 of Eagle Hospitality Entities File for Bankruptcy Protection

Eagle Hospitality Trust is putting 27 of its entities under the protection of Chapter 11 bankruptcy in the US:

DBS Trustee, as trustee of Eagle Hospitality Real Estate Investment Trust (EH-Reit), said the aim is to start a process to sell some hotels but this does not preclude the continued exploration of other restructuring options.

OUE C-REIT Selling Half of OUE Bayfront

OUE C-REIT is selling a 50% stake in the OUE Bayfront in Singapore's CBD to an Allianz entity for a value of S$1.27 billion:

The S$1.27 billion sale price commands a 7.6 per cent premium over this valuation and exceeds the property's purchase consideration of S$1 billion by 26.1 per cent.

The manager expects the divestment to lower the trust gearing ratio from 40.3% to 33.6% pro-forma.

CapitaLand Retail China Trust Selling Wuhan Property

CapitaLand Retail China Trust is announcing the sale of CapitaMall Minzhongleyuan, one of its asset in Wuhan. Built in 1919, the heritage building is sold for 256 million Yuan (about S$52.6 million). The manager expects no material effect on NAV or DPU.