REIT Oracle

Suntec Injects S$40 Million in Suntec Exhibition Centre

Suntec REIT has subscribed to a S$40 million equity raise of Harmony Investors Group (HIG), which indirectly controls the Suntec International Convention and Exhibition Centre.

The purpose of the capital injection is to support Suntec Singapore in the face of challenges to the Meetings, Incentives, Conventions and Exhibitions (“MICE”) industry in Singapore due to the COVID-19 pandemic.

As the other shareholder has not participated in the operation, the trust effective interest in HIG now amounts to about 66.3%, up from 60.8%.

Ascendas REIT Snaps Up Australian Property

Ascendas REIT has agreed to purchase a freehold piece of land to develop a logistics property in the Yennora suburb of Sydney, Australia. The A$23.5 million acquisition (which includes land and development) has a 26,632 m² area where the building is expected to be completed in the second quarter of 2021.

The net property income yield for the first year is estimated to be 5.8 per cent after taking into account the transaction costs. This yield factors in a rental guarantee of 9.5 months from Larapinta Project.

Frasers Centerpoint Increases Stake in PGIM Retail Fund

Frasers Centrepoint Trust is increasing its stake in the PGIM Real Estate Asia Retail Fund (ARF), buying a 12.07% participation for S$197.2 million. The trust now owns 24.82% of the fund.

ARF is an open-end private-investment vehicle set up as a company, and the largest non-listed retail mall fund in Singapore. It owns five retail malls near MRT stations (Tiong Bahru Plaza, White Sands, Hougang Mall, Century Square and Tampines 1) and an office property (Central Plaza) in Singapore, and one retail mall in Malaysia.

The acquisition is to be funded by debt.

Accordia Golf Trust to Sell All Its Golf Courses

Following a non-binding proposal received at the end of last year, Accordia Golf Trust has agreed to divest of all its 88 golf courses (along with memberships and debts) to Accordia Golf Co. Ltd.

The offer of ¥61,800 million correspond to about S$0.732 per unit, about 5.1% above adjusted net asset value.

Should the operation be approved during the extraordinary general meeting, this will effectively allow the delisting of the trust.

Dasin Trust Raises S$94 Million With Private Placement

Dasin Retail Trust has done a quick equity raise on Friday 26 of June, with a private placement of S$94 million - issuing 120,512,000 new units at S$0.78 per unit. The funds will go toward the purchase of Shunde Metro Mall in Guangdong, China.

Mapletree Industrial Acquires Remaining Stakes in 14 Data Centres

MIT has requested a trading halt today as it announces the purchase of the remaining 60% stake in a portfolio of 14 American data centres it already partially own. The US$218 million operation is to be funded with a private placement of at least S$350 million, but the manager believes the operation will be NAV and DPU accretive to existing unitholders.

Lippo Karawaci Wants Lease Renegociation With First REIT

While it sounds counter-intuitive, the Covid-19 pandemic has been hurting the health care sector as many non-pandemic related procedures and treatments have been delayed or outright cancelled. The Lippo Karawaci group (LPKR) has announced its desire to renegociate its leases with First REIT over its Siloam hospitals:

Under the current lease structure, the healthcare real estate investment trust (Reit) is guaranteed a certain rent level, which means any decline in Siloam's revenue increases the "significant" rental support that First Reit will receive, LPKR said.

On Monday afternoon, the Reit manager clarified that it has not been approached by LPKR regarding these matters.

Ascott REIT Will Not Call It's Perpetual Bond

Ascott REIT has announced it will not call it's perpetual bond on 30 June 2020, its first call date. While the call is entirely optional, REITs (and banks) traditionally call their perpetual bonds on their first call date.

The hospitality trust, which deals with the sharp fall in business due to the Covid-19 pandemic, would face a difficult market if it tried to refinance the issue. On the other hand, the bond which bears a 4.68% interest rate, will reset to 2.5% plus Swap Rate on the call date, which would save the trust some interest payments.

Eagle Hospitality Will Pay for Sponsor's Liabilities Using Distribution Funds

In order to preserve the condition and value of its properties, Eagle Hospitality Trust (EHT) is having to use the funds originally meant for distribution to unit holders:

This is in light of the "continuing failure" by the trust sponsor and master lessee Urban Commons to discharge its obligations under the Master Lease Agreements (MLAs), EHT said in a filing to the Singapore Exchange on Wednesday night (May 27).

EHT urgently needs to protect and safeguard the asset value of its portfolio, it said. "There is currently no alternative source of monies to fund the portfolio preservation expenses other than the monies originally intended to fund the distribution and the remaining security deposits."

Hektar Seeks Private Placement

Facing the disruption of the Covid-19 pandemic, Malaysian retail trust Hektar REIT is seeking the approval to issue up to 5% more units through a private placement:

The Proposed Private Placement will mainly allow Hektar REIT to raise the necessary funds for working capital and capital work in progress to help to facilitate Hektar REIT's existing day-to-day operations as a whole by providing more flexibility in terms of cash flow management.

While reducing the gearing level, the operation would dilute NAV and yield for existing shareholders. Timeframe for completion is indicated to be the second half of 2020.

The trust also decided to defer dividend distribution for Q1 2020.