CRCT Gets Into Business Parks

News about CapitaLand Retail China Trust

CapitaLand Retail China Trust (CRTC) is proposing to buy stakes into five business parks along with a stake in Rock Square mall, for a total price of S$822 millions (S$800 plus fees).

Assets

The purchased assets are:

  • 80% stake in Singapore-Hangzhou Science & Technology Park (phase I and II)
  • 51% stake in Ascendas Xinsu Portfolio in Suzhou
  • 100% stake in Ascendas Innovation Towers in Xi’an
  • 80% stake Ascendas Innovation Hub in Xi’an
  • The remaining 49% stake in Rock Square in Guangzhou
Financing

Financing is yet to be determined.

CRCT intends to finance the Acquisition through an optimal mix of debt, equity and hybrid securities which will result in distribution per unit accretion.

Expectations

Along with diversifying the trust assets (which so far was exclusively operating retail properties), the manager expects the operation to be DPU accretive by 5.1% pro-forma.

CapitaLand Retail China Trust
Price1.240 SGD
NAV1.600 SGD
Yield (4 quarters)4.32%
Gearing34.7%