REIT Oracle

IREIT Acquires Share of Spanish Portfolio

IREIT is purchasing, in a 40:60 joint-venture with Tikehau Capital (one of its main shareholder), a group of 4 Spanish office properties, for a total transaction price of 133.8 million €. Located in the Madrid and Barcelona regions, all the properties are freehold and have a total occupancy rate of 80.9% and average WALE of 4.6 years.

Under the terms of the joint venture, Tikehau Capital will grant IREIT a call option to acquire its 60% stake. CDL has also shown its commitment and support by extending a bridging loan to finance IREIT's investment

Long term funding of IREIT's 57.6 million € share of the venture is yet to be determined.

Mapletree North Asia Buys Two Japanese Office Properties

Mapletree North Asia Commercial Trust is to acquire a 98.47% stake in two office properties in the greater Tokyo area. Both freehold, the buildings have a 85.9% occupancy rate, 3.4 years WALE and 4.5 Net Property Income yield. The total transaction represents about S$485.1 million.

Parkway Life REIT Acquires 3 Japanese Properties

Parkway Life REIT announces the acquisition of three Japanese properties. The trust will spend approximately S$46.3 million total to acquire the nursing homes in the aging country. The operation is expected to be DPU accretive as the Net Property Income yield is at 6.8% and to be funded by long term JPY debt, pushing the trust gearing level to 38%.

BHG Retail REIT Plans New Outlet Mall Purchase

BHG Retail Trust is eyeing the acquisition of Badaling Outlets, a S$455 million outlet mall in Beijing. Comprising 14 buildings, the property has a Net Property Income yield of 8.7% and an occupancy rate of 100%.

In an unusual move, the trust will fund part of the purchase by paying the vendor with 260 million new shares issued at S$0.75, to be completed with cash from a more traditional private placement of over 94 million new units.

Frasers Logistics & Frasers Commercial Are Getting Hitched!

It's now official, Frasers Logistics & Industrial Trust (FLT) and Frasers Commercial Trust (FCOT) are merging. The two trusts, sponsored by developer Frasers Property, will combine by way of the takeover of FCOT by FLT. The shareholders of FCOT will receive for each share:

• S$0.151 in cash
• 1.233 new FLT units

Along with this big news, FLT is also announcing the acquisition of a 50% interest in Farnborough Business Park in the United Kingdom for about S$157.7 million. The 50,882 m² property has a 99.1% committed occupancy rate and a WALE of 6.8 years. The purchase is expected to be DPU accretive.

Exit Offer for Accordia Golf Trust

In a scenario reminiscent of Saizen REIT, Accordia Golf Trust has received a non-binding offer to purchase all its golf courses from an unamaned interested party. The trust's manager is said to be evaluating the offer.

Frasers Logistics & Frasers Commercial Considering a Merger

Bloomberg reports that Singapore REITs Frasers Logistics and Frasers Commercial are planning to merge:

A combined company would manage almost 100 properties worth $4 billion across Singapore, Australia and Europe, including warehouses, offices and business parks, according to their websites. An announcement on the deal could come within days, one of the people said, declining to be named as the information is still private.

Trading of both trusts was halted on Thursday.

Far East Pondering New Singapore REIT IPO

Another hospitality REIT could list in Singapore, as the HK developer Far East is considering another listing in the Singapore market:

Hong Kong-based Far East Consortium is working with advisers on the potential sale of trust units backed mainly by hotels under the Dorsett brand, the people said. The initial public offering (IPO) could take place as early as in the first half of 2020, according to two of the people, who asked not to be identified because the details are private.

CDL Hospitality Sells and Buys in Portfolio Reshuffle

CDL Hospitality Trusts is planning to reorganize its portfolio with a three pronged operation:

• divestment of Novotel Singapore Clarke Quay, for the sale price of S$375.9 million
• acquisition of the W Singapore - Sentosa Cove, for S$324 million
• forward purchase of an upcoming hotel to be built within a redevelopment of the current Liang Court at Clark Quay, for the price of S$475 million

The first two operations will leave the REIT with a pro forma gearing level of 35.3%, allowing some headroom to finance the upcoming new hotel. An Extraordinary General Meeting will be convened to vote on the proposal.

Two More Malls for Dasin Retail Trust

Dasin Retail Trust is announcing the planned acquisition of two more Chinese malls, Shunde Metro Mall and Tanbei Metro Mall. Located both in the Guangdong province, the first one has an occupancy of 99.3% and a WALE (by GRI) of 5.2 years. Tanbei Metro Mall has an occupancy of 99.3% and a WALE (by GRI) of 7.7 years.

At a total cost of about S$333 million, the purchase will be funded by a mix of debt and equity. As such, the manager is looking to raise about S$98.4 by issuing up to 120 million new units at a price of S$0.82.