REIT Oracle

Mapletree Logistics Acquires South-Korean Property

Mapletree Logistics Trust has announced the acquisition of Wonjin Logistics Centre, in Gyeonggi-do, South Korea, for KRW37.85 billion.

Located near Seoul, the two blocks property built in 2007 and 2018 has a gross floor area of 29,325 m². It is fully leased with a WALE of 4.3 year (by Net Lettable Area) and a Net Property Income yield of about 6.5% based on the transaction price.

The purchase will be funded by debt, which upon completion of the transaction will set the gearing ratio to about 39.2%.

BHG Retail Plans to Acquire Mall

BHG Retail REIT has agreed to purchase Hefei Changjiangxilu Mall in China for 328.3 million Yuan, or S$ 65.2 million. The leasehold property, completed in 2010, has a Net Lettable Area of 27,221 m² and an occupancy rate of 99.4%. Anchor tenants include BHG Supermarket, KFC, Pizza Hut as well as a movie theater.

The manager, which expects the purchase to be DPU and NAV accretive, plans to finance the acquisition through debt, increasing the leverage to 37% by the end of the year. The approval of unitholders will be required for the transaction to go through.

Mapletree Logistics Acquires Vietnam Property

Mapletree Logistics Trust announces the acquisition from Unilever of a 66,800 m² warehouse in Binh Duong province, Vietnam for a price of about S$43 million. The property will be leased back to Unilever Vietnam for 10 years.

Upon completion of the acquisition, the trust gearing will reach 38.9%.

Frasers Logistics Acquires Dutch Property

Frasers Logistics Trust is buying its 22nd property in Europe with the acquisition of a logistics property in the Netherland for a price of 25.36 € million.

Located in Meppel, the freehold property of 31,013 m² is currently fully leased by FrieslandCampina with a long WALE of about 14.9 years.

Cromwell REIT Makes Acquisitions and Raises Capital

Cromwell REIT is announcing a large acquisition of 3 different European properties portfolio for 384.4 € millions, and raising fresh capital with a new rights issue.

The trust is planning to acquire:

• A portfolio of 16 mostly office properties in the Netherlands, Finland and Poland for a total of 312.5 € millions, with a net initial yield of 6.2%
• A group of 4 French logistics properties in the greater Paris area, for 34.4 € million, with an initial net yield of 8.5%
• 2 office properties in Italy, for a price of 37.5 € million, with a net initial yield of 7.4%

Financing will be done through debt and a public rights issue of 224.1 € million, with 38 new units for 100 units held at 0.373 € per new unit.

Unit holders will get to vote on the plan at an EGM organized on November 15.

Mapletree Logistics Buys a$105M Brisbane Property

Mapletree Logistics Trust is purchasing a warehouse in Brisbane for a total of A$105 Million. The single story freehold property is expected to have an initial net income yield of 5.7%. It is fully occupied by Coles Supermarket with 3.8 years of lease left after the purchase.

Keppel-KBS Raises Capital With 295-for-1000 Rights Issue

Following its agreement to purchase 21 buildings in the Seattle area, Keppel-KBS REIT is raising US$93.1 million of fresh capital with a rights issue. Shareholders who held units on 22 October will be entitled to subscribe to 295 new units for each 1000 held, at a price of US$0.50 per new unit. This represents a 30.1% discount on the closing price of US$0.715 before the announcement.

Frasers Commercial Trust's 1 Year Leasing Results

The Investment Moats analyses Frasers Commercial Trust leasing results over the past year.

FCOT is supporting their dividend per unit with the money that they get from the sale of the hotel rights to Frasers Property Limited, paying management fees in units, taking DRIPs.

The reason for doing this is because due to the construction next to China Square Central, occupancy is affected. This will be done in 2019. Another reason is major tenant at Alexandra Technopark HP Singapore and HP Enterprises have moved out.

ESR and Viva Merger Now Binding

As the ESR-REIT and Viva Industrial Trust (VIT) merger has become binding as of today, VIT units will be delisted on October 22, 2018. The enlarged portfolio of ESR-REIT will then include 56 properties valued at S$3.0 billion, making it the fourth largest industrial REIT listed in Singapore.

Cache Sells Shanghai Warehouse

Cache Logistics Trust divests its Jinshan Chemical Warehouse in Shanghai. Acquired in June 2011 for RMB 71 million, the property will be sold at RMB 87 million or a 22.5% premium over its acquisition price. This is also more than the last valuation of RMB 77.3 million done on August 15th.