REIT Oracle

Mapletree Industrial Snaps Japanese Data Centre, Raises Equity

Mapletree Industrial Trust is announcing the purchase of a data centre in Osaka, Japan, for S$503.8 million as well as an S$200 million equity raise via a private placement of new units:

The acquisition is also expected to be distribution per unit-accretive and net asset value per unit-accretive to unit holders, at a rate of 2.1 per cent and 0.5 per cent respectively, said the manager.

MIT said it intends to raise $200 million via issuing about 92.6 million new units at an issue price of between $2.16 and $2.212 per unit to fund the Osaka transaction. The remaining $4.3 million will be used for paying fees and expenses incurred by the fund raising.

Manulife US REIT Selling Phipps Tower

Manulife US REIT continues to work on deleveraging and is announcing the planned sale of Phipps Tower (in Atlanta) to its sponsor:

The purchase consideration should be no more than the average of two independent valuations commissioned by the Reit’s manager and its trustee, DBS Trustee.

The Reit manager said it aims to enter into a definitive agreement for Phipps Tower’s disposal by June 30, 2023. It will also waive the disposal fee.

CapitaLand Ascendas Buys Seagate's R&D Facility, Makes $S450M Equity Raise

CapitaLand Ascandas REIT (CLAR) is annoucing the purchase of The Shugart from Seagate Singapore (a R&D facility) for S$218.2 million. The trust is also embarking on a large private placement of at least S$450 million:

The acquisition of The Shugart from Seagate Singapore is expected to be distribution per unit (DPU) accretive to unitholders, said its manager on Tuesday (May 16).

Assuming the acquisition was completed on Jan 1, 2022, DPU would increase by 0.7 per cent or 0.11 Singapore cent.

AIMS APAC REIT Sells Yishun Industrial Property

AIMS APAC REIT is announcing the divestment of 541 Yishun Industrial Park A (Singapore):

The sale price of S$12.88 million represents an 8.2% premium to the Property’s valuation of S$11.9 million as at 31 March 2023. Net proceeds from the divestment will be utilised to repay debt initially and may be recycled to asset enhancement initiatives, redevelopment opportunities and selective acquisitions.

Manulife US REIT Sells Tanasbourne Property in Oregon

Manulife US REIT, in its deleveraging effort, is announcing the divestment of Tanasbourne (in Hillsboro, Oregon) for US$33.5 million:

In an announcement on Wednesday (Apr 12), the Reit said it will book a net loss of US$400,000 from the divestment.

The divestment comes as Manulife US Reit seeks to lower its leverage, which stood at 48.8 per cent as at Dec 31, 2022. Assuming all the net proceeds from the divestment are used to repay debt, the Reit’s gearing will fall to 48 per cent.

Data from Manulife US Reit’s annual report for 2022 indicated that Tanasbourne was valued at US$33.5 million as at Dec 31, 2022, the lowest among all its assets.

Mapletree Acquires Eight Logistics Properties, Sells One

Mapletree Logistics Trust is announcing the purchase of a portfolio of 8 properties:

• Proposed acquisitions of eight prime, modern and mostly new logistics assets in Japan, Australia and South Korea for total acquisition price of S$913.6 million
• Potential acquisition of two modern logistics assets in China for S$209.6 million
• Potential divestment of non-core property in Hong Kong SAR for S$100.3 million
• Deepen presence in Tokyo, Sydney and Seoul – attractive logistics markets with tight supply
• Proactive capital management to rebalance debt portfolio
• Proposed acquisitions are expected to be distribution per Unit (“DPU”) and net asset value (“NAV”) per Unit accretive on a historical pro forma basis

Funding is expected to be a mix of new debt and equity.

Thailand's DTGO Considering Placing Its UK Hospitality Assets in a New S-REIT

Singapore could count a second UK-focused REIT if DTGO pulls the trigger on launching a new listed trust there:

The Bangkok-based company is in talks with potential advisers on the initial public offering of the REIT, which could raise about £200 million (8.3 billion baht), the people said. The UK hospitality assets involved could be worth about £500 million, said the people, who asked not to be identified as the process is private.

Lippo Malls Facing Debt Issues, Suspends Distribution to Perpetuals

Lippo Malls Indonesia Trust's debt has recently been downgraded by Moody's to Caa1 and by Fitch to CCC+. The trust gearing level of 44.6% is now close to the regulatory limit of 45%, and it will need to refinance the majority of its debt in the next 16 months. A depreciating Indonesian Rupiah is also adding to the woes as the trust has debt in both US and Singapore Dollars.

Hot on its 2022 results, the trust has thus announced the suspension of payment to perpetual securities holders:

LMIR Trust also intends to cease distributions for the $140.0 million and $120.0 million perpetual securities.

As those bonds have a "dividend stopper" clause, this would also prevent the trust from paying distribution to shareholders until payments to perpetual holders resume.

The trust has announced the appointment of Stirling Coleman Capital Limited as financial advisor in a capital management initiative, which aim to improve its balance sheet and financing situation:

As mentioned in the Announcement, the Manager is exploring options and measures to maintain a sustainable capital structure and reduce the aggregate leverage of LMIR Trust.

ESR-Logos REIT Raises S$300 Million in Equity

ESR-Logos REIT is seeking to refill its coffers by raising about S$300 million of fresh equity. The new share issuance will be split with no less than S$150 million raised in a private placement at a price between S$0.330 to S$0.335 per share, and S$150 million in a preferential offering done at a discount of S$0.005 per share to the private placement price.

Frasers Centrepoint Buys Stake in Nex Mall, Singapore

Frasers Property and Frasers Centrepoint Trust have agreed to jointly acquire a 50% stake in Nex Mall, Singapore, for a purchase consideration of S$652.5 million:

NEX is located within the Serangoon housing estate which has an estimated resident population of 68,800 with 21,634 Housing Development Board (HDB) flats in the area. NEX is the largest suburban retail mall in Northeast Singapore with total net lettable area of approximately 634,631 square feet spread over seven retail levels, including two basement levels, and the committed occupancy was 99.9% as at end-November 2022.

The property sits on a leasehold land plot, with 85 years remaining on the lease.