REIT Oracle

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.

A$670 Million Australian Investment for SPH REIT

SPH REIT is expanding further in Australia with the acquisition of a 50% stake in the Westfield Marion Shopping Centre within the Adelaide region. The mall, a freehold property, has 3 floors of retail and 5 floors of office space. Occupancy stands a high 99.3% and WALE is 4.2 years by income.

The funding for the A$670 million purchase price will come from debt and/or equity, to be determined later.

ARA US Hospitality Acquires 3 Service Hotels

ARA US Hospitality Trust is announcing both its Q3 results and the acquisition of 3 new American properties. Located in Raleigh (CA) and San Antonio (TX), the three Marriott-branded hotels are all freehold properties and have a combined NPI of 8%. The purchase of US$84.5 million will be funded by debt, pushing the trust gearing from 32% to 38% and the manager expects it to be DPU accretive.

Massive Expansion for Ascendas REIT

Hot on the presentation of its Q3 results, Ascendas REIT is announcing a massive acquisition with the purchase of S$1.66 billion worth of business parks from its sponsor CapitaLand. Made of 30 business parks (28 in the USA and 2 in Singapore), the portfolio comes with a NPI yield of 6.5% and a WALE of 4.9 years.

To fund the operation, a large right issue has been initiated to raise about S$1.31 billion. Every unitholder will be able to subscribe 16 new shares for every 100 held at a price of S$2.63 per new unit.

Keppel Pacific Oak Completes Private Placement

Keppel Pacific Oak US REIT has completed a private placement, issuing 104,286,000 new units at a price of US$0.725 per unit. The operation was more than 4 times oversubscribed and raised about US$73.1 million. The proceeds will be used to fund the previously announced purchase of a Dallas office complex.

Mapletree Logistics Acquires Property Portfolio, Raises S$250 Million

Hot on the publication of its Q3 results, Mapletree Logistics Trust is announcing the acquisition from its sponsor of 7 logistics properties across Malaysia, Vietnam and China. All 100% leased, the purchase of S$493.4 million is expected to be DPU and NAV accretive.

Following this announcement, the trust has quickly raised S$250 million through a private placement at a price of S$1.617 per new unit.

Mapletree Commercial Makes S$902.3 Million Equity Raise

Mapletree Commercial Trust is raising equity to fund the acquisition of Mapletree Business City (phase 2) buy issuing 406.5 million new units, with:

• A private placement of S$200.9 million, at $2.24 to $2.28 per share
• A public right issue, with the option to buy up to 71 new units for every 1,000 held, at a price of $2.20 to $2.24 per new unit

The public preferential offering will be open from October 30 to November 7 at 5pm.

Ascendas REIT Acquires Australian Office

Ascendas REIT is announcing the purchase of 254 Wellington Road in Musgrave near Melbourne, Australia. The freehold suburban office with a 17,507 m² NLA is due to be completed next year.

Nissan has committed to lease 65.2% and the vendor will provide a 3-year rental guarantee for the remaining vacant space.

The transaction of A$112.2 million is expected to be DPU accretive.

Keppel REIT Sells Bugis Junction Towers

Keppel REIT is announcing the sale of its Bugis Junction Towers property (Singapore). The sale price of S$547.5 million is 6.3% above the latest valuation ; no specific plans for the proceeds have been announced yet.