REIT Oracle

Mapletree Industrial Trust Makes S$175M Private Placement

Mapletree Industrial Trust is planning to issue 90.44 million new units to raise at least S$175 million

The new units will be placed to eligible institutional, accredited and other investors at an issue price of between S$1.935 and S$1.990 per new unit. The price range represents a discount of between 4.65 per cent and 1.94 per cent, respectively, to the volume-weighted average price of S$2.0293 per unit of all trades on Feb 11.

The trust mostly plans to use the fund to refinance the acquisition the property of 18 Tai Seng Street.

Bloomberg: The Incredible Shrinking Singapore Stock Market

Bloomberg publishes an in-depth look into the shrinking number of companies listed on Singapore's stock market, SGX.

For the last five years, delistings have outnumbered listings in the market, which had 741 companies at the end of December last year, down from a peak of 782 in 2010. In 2018 the money raised from the 15 SGX initial public offerings, excluding depositary receipts, fell to just S$710.6 million, while 19 companies departed—a net outflow of S$19.2 billion in market value.

Ascott REIT Sells Singapore Property

Ascott REIT is divesting from its Ascott Raffles Place property in Singapore's business district, for a sale price of S$353.3 million (64% above the valuation done on 31 December 2018). The art-deco tower, dating back to 1955, sits on a 999 year leasehold plot and generated about 3% of the trust gross profit.

Ascott REIT will use the proceeds to reduce debt and fund potential acquisitions and does not expect the transaction to have a material impact on its financial results.

Sabana REIT's Manager Interview

The Business Times interviews Sabana REIT's manager's CEO

Phase one of that strategy was to ramp up the occupancy rate at the buildings in its portfolio from around 85 per cent to market rate of 88-89 per cent. Within the first month, he called a meeting with top-tier agents from different agencies like Knight Frank, CBRE, Savills and Colliers which are the prime movers of the real estate sectors.

Cromwell REIT Acquires 3 French Properties

Cromwell European REIT plans to buy from CDPG Luxembourg three logistics properties in France for 21.6 million euros. Located in Sully-sur-Loire (near Orléans), Parçay-Meslay (near Tours) and Villeneuve-lès-Béziers (near Béziers), the freehold assets have a Net Initial Yield of 8.5%. The transaction will be funded with equity and debt thanks a to a recent new share issue done by Cromwell REIT.

SPH REIT Enters Australian Market

SPH REIT is planning to enter the Australian mall market by buying a 85% stake in an asset near Wollongong, at a price of A$175.1 million. The freehold property, Figtree Grove Shopping Centre, has a 21,984 m² gross lettable area and includes supermarkets and specialty stores.

The acquisition will be done through Figtree Holding Trust, a wholly owned subtrust of a joint venture held by SPH Reit and entities managed by the asset management division of financial services group Moelis Australia.

Mapletree Industrial Trust Planning Singapore Acquisition

Mapletree Industrial Trust is planning to buy a mixed use building in Paya Lebar iPark (Singapore) for S$268.3 million. The property of over 41,000 m² has a short 30-year land lease starting in 2014 and a committed occupancy of 94.3%. The trust will seek unitholders' approval.

Reits' Asset Injections: A Little Less Action a Little More Discretion, Please

The Business Times publishes an editorial regarding the recent wave of rights-issue that has dismayed Singapore's REIT shareholders.

Recent cash calls by OUE Commercial Reit, Keppel-KBS US Reit and Cromwell European Reit have all drawn negative market reactions. As one market watcher whispered in passing: You never know who's next.

Indeed, Reits have always relied on equity dilution or new debt to fund acquisitions, since the law requires them to distribute at least 90 per cent of income to enjoy tax benefits.

Keppel REIT Sells 20% Share of Ocean Financial Centre

Keppel REIT is selling a 20% stake of the Ocean Financial Centre to Allianz Real Estate for a sum of S$537.3 million. This is 16.8% higher than its original purchase price and will leave Keppel REIT with a 79.9% ownership of the property.

Ascendas Hospitality Acquires Seoul Property

Ascendas Hospitality Trust is acquiring the Ibis Ambassador Seoul Insadong, in South Korea, for about S$94.5 million. The freehold asset is a 363 rooms hotel built in 2013 leased by the Ambassador Hotel Group, with a 20 years tenor starting in 2013.

The purchase is intended to be funded by dept and be DPS accretive.