REIT Oracle

Praemia REIM Could Be Considering Listing Health-Care Assets in New Singapore REIT

Bloomberg reports that France's Praemia REIM is considering floating its health-care assets into a Singapore-listed REIT:

The hospital assets included in the REIT may be worth $2 billion to $3 billion, the people said, asking not to be identified because the deliberations are private. The real estate investment firm may seek to raise several hundred million dollars from the first-time share sale, they said.

Conditional Cash Offer for Suntec REIT Made at $1.16 Per Unit

A mandatory conditional cash offer to acquire all the units of Suntec REIT has been made by Aelios at $1.16 per unit:

Aelios said that the offer was made solely to comply with Rule 14.1 of Singapore’s takeover code, by which any entity controlling more than 30 per cent of a Reit must make a mandatory general offer to acquire its remaining units.

ESR-LOGOS REIT Renamed to ESR REIT

Starting from today, ESR-LOGOS REIT is renaming itself to just ESR REIT. Counter code (J91U) remains unchanged.

Monetary Authority of Singapore Enact New REIT Debt Rules

The Monetary Authority of Singapore is modifying REIT regulations regarding leverage:

The Monetary Authority of Singapore (MAS) said on Nov 28 it will impose a minimum interest coverage ratio (ICR) of 1.5 times to all Reits.

The ICR is a measure of how well a company can repay the interest on its debt.

MAS also said a single aggregate leverage limit of 50 per cent will be applied to all Reits.

Along with this simplification of leverage limits, new disclosure requirements are enacted:

Under these additional rules, Reit managers should do analyses on how changes in their earnings and interest rates can affect their ICR levels, and disclose these studies.

Mapletree Logistics Sells Two Japanese Assets

Mapletree Logistics Trust is disposing of two Japanese warehouse properties for S$37.5 million:

The divestment is not expected to have a material impact on MLT’s net property income for FY2024 and FY2025.

Elite UK REIT Makes £3.3 Million Divestment

Elite UK REIT is selling Hilden House in Warrington (UK), for £3.3 million (or about S$5.6 million):

This represents a 6 per cent premium above the property’s valuation of £3.1 million as at Jun 30, 2024, based on an independent valuation conducted by property player CBRE.

Paragon REIT Sells Stake in Australian Mall

Paragon REIT is selling its 85% stake in Figtree Grove, a shopping center in Wollongong, Australia, for A$192 million:

The divestment consideration reflects a 5 per cent, or A$9 million, premium over the independent valuation of the property of A$183 million as at Oct 31, 2024.

Thai Group Minor International Plans to Float Hotel REIT

In order to reduce its debt burden, Thai group Minor International is looking to float a hospitality REIT:

Minor currently has over 560 hotel properties in 57 countries, with most of its business in Europe through NH Hotel Group SA, which it acquired in 2018. The company also runs more than 2,600 restaurant outlets in 24 countries, with the majority located in Thailand.

Keppel DC REIT Makes Big Acquisition, Will Raise S$1 Billion in Equity

At a gross price of S$1.38 billion, Keppel DC REIT will be purchasing from its sponsor Keppel a joint-venture unit, which owns the Keppel Data Centre Campus in Singapore:

Keppel DC REIT will have full ownership of data centres KDC SGP 7 and KDC SGP 8, while Keppel will maintain its operational and management roles for both, the companies said in a joint statement.

To fund the operation, an equity raising exercise of about S$1 billion is launched:

This comprises a private placement to raise around S$600 million in gross proceeds, and a non-renounceable preferential offering to raise gross proceeds of about S$300 million. It will also include an issuance of subscription units to raise about S$85 million.

CapitaLand Ascendas to Develop South Carolina (US) Logistics Property

CapitaLand Ascendas REIT is announcing the acquisition of a parcel of land and the development of a logistics property in Summerville, a submarket of Charleston, South Carolina, in the United States of America. The total estimated cost is cost of S$94.8 million.

On a pro forma basis, the property – Summerville Logistics Center – will increase the Reit's logistics assets under management in the US by 27.9 per cent to about S$434.1 million.