Saizen completes divestment of Patios Ohashi - 30 SEP 2010

Saizen completes divestment of Patios Ohashi. See press release.

Key Points

• Further to Saizen Real Estate Investment Trust’s ("Saizen REIT") announcement on 21 September 2010, the Board of Directors of Japan Residential Assets Manager Limited, the manager of Saizen REIT, is pleased to announce that the divestment of Patios Ohashi was completed on 30 September 2010.
• The sale price of Patios Ohashi is JPY 79,352,200 (S$1.2 million1) and a deposit of JPY 4,325,200 (S$0.1 million) was paid on 21 September 2010. The remaining sum was paid on 30 September 2010.

Mapletree Industrial Trust to raise S$1.2b from unit sales - 29 SEP 2010

Source

SINGAPORE: Mapletree Industrial Trust has planned to raise as much as S$1.2 billion in gross proceeds from a sale of its units.

It's launching the initial public offering (IPO) to retail, institutional and cornerstone investors

Mapletree Industrial Trust said it was offering 594.9 million units in its IPO.

In a prospectus filed with the Monetary Authority of Singapore, the trust said the unit would be priced between 88 and 93 cents per unit.

Of the 594.9 million units offered by Mapletree Industrial Trust, 488.77 million units are being offered to institutional investors and 106.15 million to the public.

The company will also sell an additional 322.58 million units to cornerstone investors.

The nine cornerstone investors include APG Tactical Real Estate Poll, American International Assurance and Prudential.

Mapletree Industrial Trust will use the proceeds to buy six properties in Singapore and to repay debt.

Its portfolio comprises 70 properties located in Singapore.

The IPO could raise S$1.2 billion, making it Singapore's second biggest this year.

It comes hot on the heels of a S$3.9 billion IPO planned by GIC's logistics unit, Global Logistic Properties (GLP).

GLP's public offer opens on October 11 and listing is scheduled for October 18, while Mapletree Industrial Trust's public offer opens October 13 with listing due on October 21.

But dealer at Phillip Securities Melvin Ho said he did not think GLP would steal the thunder from Mapletree Industrial Trust.

Mapletree Industrial Trust is a unit of Mapletree Investments which is owned by Temasek Holdings.

In June, Mapletree Investments had said it planned to launch two REITS: a commercial property trust and an industrial property trust.

Updated Target Price for Cambridge after announcement of acquisition

Updated Target Price for Cambridge after announcement of acquisition:

DBS Vickers

HOLD

S$0.54

30/09/10

Latest updates at Stock Target Price.

Updated Target Price for Ascott Reit, CapitaMall Trust, FrasersCT, LippoMapleTrust, MapletreeLog, Starhill Global, SUNTEC Reit by OCBC

Updated Target Price by OCBC:

AscottReit	BUY	S$1.33	30/09/10
CapitaMall	HOLD	S$2.01	30/09/10
FrasersCT	HOLD	S$1.49	30/09/10
LippoMapleTrust	BUY	S$0.52	30/09/10
MapleTreeLog	BUY	S$0.90	30/09/10
Starhill Gbl	BUY	S$0.65	30/09/10
Suntec	HOLD	S$1.44	30/09/10

Latest updates at Stock Target Price.

Cambridge's proposed acquisition of 25 Tai Seng Avenue - 2 SEP 2010

Cambridge's proposed acquisition of 25 Tai Seng Avenue. See press release.

Key Points

• Cambridge Industrial Trust Management Limited, as manager of Cambridge Industrial Trust (“CIT” and the manager of CIT, the “Manager”), is pleased to announce the proposed acquisition of the property located at 25 Tai Seng Avenue, Singapore 534104 (“25 Tai Seng Avenue”).
• The Acquisition is subject to the Vendor’s shareholders approval and is expected to be completed in 4th quarter of 2010.
• The building at 25 Tai Seng Avenue was completed in 2009. It comprises a seven-storey light industrial building located within the Paya Lebar iPark. 
• The appraised value of 25 Tai Seng Avenue, based on a valuation conducted by Colliers International Consultancy & Valuation (Singapore) Pte Ltd (“Colliers”) on 5 August 2010 using the direct comparison method, discounted cash flow analysis and the capitalisation approach, is S$21.5 million.
• The purchase consideration of 25 Tai Seng Avenue is S$21.1 million, which was arrived at on a willing-buyer and willing-seller basis, based on the appraised valuation conducted by Colliers.
• The estimated total cost of the Acquisition is approximately S$21.5 million, comprising:


• the purchase consideration of 25 Tai Seng Avenue of S$21.1 million; 
• the acquisition fee payable to the Manager under the trust deed dated 31 March 2006 constituting CIT entered into between the Trustee and the Manager (as amended) in respect of the Acquisition, which amounts to approximately S$0.2 million; 
• the professional and other fees and expenses incurred or to be incurred in connection with the Acquisition which amount to approximately S$0.2 million.


• CIT has sufficient financial flexibility and capacity to fund the Acquisition which is expected to complete by 4th quarter of 2010.
• The Manager believes that 25 Tai Seng Avenue is a quality industrial asset that has been purchased at an attractive yield which is comparable or better than yields of recent transactions in the market. Additionally, the acquisition of 25 Tai Seng Avenue will further reduce the reliance of CIT’s income stream on any single asset and tenant, increase the weighted average lease tenure of CIT’s portfolio as at 30 June 2010 and reduce CIT’s lease expiry concentration in 2013 and 2014.

Saizen divests four properties - 29 SEP 2010

Saizen divests four properties. See press release.

Key Points

• The Board of Directors of Japan Residential Assets Manager Limited, the manager ("Manager") of Saizen Real Estate Investment Trust ("Saizen REIT"), wishes to announce the divestments of Sun Park Yokokawa, Funairi Honmachi 54, Residence II Yasuda and Matoba Y Building from the property portfolio of Yugen Kaisha (“YK”) Shintoku.
  

Cambridge completes acquisition of 22 Chin Bee Drive - 29 SEP 2010

Cambridge completes acquisition of 22 Chin Bee Drive/Use of proceeds from the private placement. See:

• Press Release

Key Points

• Cambridge Industrial Trust Management Limited, as manager of Cambridge Industrial Trust (“CIT” and the manager of CIT, the “Manager”), is pleased to announce the completion of the acquisition of the property located at 22 Chin Bee Drive, Singapore 619870 (“22 Chin Bee Drive”).
• RBC Dexia Trust Services Singapore Limited, in its capacity as trustee of CIT (the “Trustee”), has today completed the acquisition of 22 Chin Bee Drive from Deluge Fire     Protection (S.E.A.) Pte Ltd pursuant to a put and call option agreement dated 12 August 2010 entered into between the Trustee and Deluge Fire Protection (S.E.A.) Pte Ltd.
• Chin Bee Drive, which was completed in 2008, comprises two levels of warehousing facilities and a mezzanine level of office space, a six-storey ancillary office and a five-  storey annex comprising a workers’ dormitory. It is located in the west of Singapore and is accessible via the Ayer Rajah Expressway and the Pan Island Expressway.
• Further to the announcement dated 12 August 2010 in relation to the private placement of 83,683,000 new Units at an issue price of S$0.478 per Unit (the “Private Placement”), the Manager wishes to announce that S$10.0 million of the net proceeds from the Private Placement has been utilised for the part payment of the purchase price for 22 Chin Bee Drive and estimated acquisition costs.
   

Updated Target Price for Ascott Reit

Updated Target Price for Ascott Reit:

Kim Eng

BUY

S$1.38

22/09/10

Latest updates at Stock Target Price.

Updated Target Price for CDL H-Trust

Updated Target Price for CDL H-Trust:

CIMB

OUTPERFORM

S$2.30

27/09/10

 
Latest updates at Stock Target Price.

Updated Target Price for CMT

Updated Target Price for CMT:

OCBC

BUY

S$2.01

24/09/10

 
Latest updates at Stock Target Price.

Updated Target Price for Starhill Global

Updated Target Price for Starhill Global:

OCBC

BUY

S$0.65

15/09/10

 
Latest updates at Stock Target Price.

Updated Target Price for Plife

Updated Target Price for Plife:

CIMB

OUTPERFORM

S$1.91

08/09/10

Latest updates at Stock Target Price.

Updated Target Price for MLT following its announcement of equity raising

Updated Target Price for MLT following its announcement of equity raising:

OCBC

BUY

S$0.90

23/09/10

Latest updates at Stock Target Price.

MapletreeLog's Launch of Equity Fund Raising to raise approximately S$300 million in Capital to Fuel Growth - 21 SEP 2010

MapletreeLog's Launch of Equity Fund Raising to raise approximately S$300 million in Capital to Fuel Growth. See press release.

Key Points

• Equity Fund Raising to comprise 
• Private Placement of up to 207,317,073 New Units to raise gross proceeds of approximately S$170 million 
• Preferential Offering of 164,345,224 New Units to raise gross proceeds in excess of S$130 million
• New Units to be offered at a price of between S$0.82 to S$0.84 for the Private Placement and at a price of between S$0.81 to S$0.83 for the Preferential Offering.
• Preferential Offering to be made on the basis of two New Units for every 25 existing units held by entitled unitholders of Mapletree Logistics Trust (“MapletreeLog”) as at 29 September 2010 (“Book Closure Date”).
• Mapletree Investments Pte Ltd, the largest unitholder and sponsor of MapletreeLog (the “Sponsor”) through its designated wholly-owned subsidiaries, has given irrevocable undertakings to take up their provisional allotment of approximately 44.3% of the New Units under the Preferential Offering and subscribe for such number of New Units, to the extent that they remain unsubscribed.
• Net proceeds to be used to finance substantially five announced acquisitions in Vietnam, Singapore, Japan and South Korea, as well as three proposed acquisitions in Singapore and one proposed acquisition in Japan with total aggregate purchase price and estimated acquisition-related costs amounting to approximately S$440 million.
• Post completion of the Equity Fund Raising, MapletreeLog’s gearing level is estimated to fall from about 46% (assuming the above acquisitions are funded by debt) to about 38%; this will allow MapletreeLog to continue its trajectory of growth.
  
   

MapletreeLog Acquires 51st Property in Singapore for S$18.3 million - 21 SEP 2010

MapletreeLog Acquires 51st Property in Singapore for S$18.3 million. See:

• Press Release
• Presentation

Key Points

• Mapletree Logistics Trust Management Ltd. (“MLTM”), as Manager of Mapletree Logistics Trust (“MapletreeLog”), is pleased to announce that a Sale and Purchase Agreement has been signed today with AW Transport & Warehousing Pte Ltd (the “Vendor”) for the acquisition of AW Centre (the “Property”) at 73 Tuas South Avenue 1, Singapore 637600 (the “Acquisition”). 
• The Property is a 4-storey single user bonded warehouse with ancillary
  office.
• The Property will be acquired for a purchase consideration of S$18.3 million. The Vendor, a bonded warehouse operator, will lease back the Property for a period of 7 years, with an option to extend for a further period of 7 years.
• Including all the acquisitions announced to date, this latest Acquisition will bring total book value of MapletreeLog’s investment properties to approximately S$3.34 billion.
• The Acquisition is subject to JTC’s approval and is expected to be completed by 4Q of 2010. It is intended that the Acquisition will be fully funded by proceeds raised in the latest equity fund raising exercise (announced on the same day as this announcement).
  
  
   

MapletreeLog completes acquisition of 3 Properties in Japan - 21 SEP 2010

MapletreeLog completes acquisition of 3 Properties in Japan.

• Press Release

Key Points

• Further to its press release dated 28 July 2010 to acquire 3 properties in Japan; namely, Iwatsuki Logistics Centre, Iruma Logistics Centre and Noda Logistic Centre, for a total purchase price of JPY13 billion approximately S$208 million , Mapletree Logistics Trust Management Ltd., as manager of Mapletree Logistics Trust is pleased to announce that these acquisitions were completed today. 
• With these acquisitions, Mapletree Logistics Trust has 91 properties with 50 properties in Singapore, 13 in Japan, 8 in Hong Kong, 6 in China, 11 in Malaysia, 2 in South Korea and 1 in Vietnam. The total book values of these properties were approximately $3.32 billion.
   

MapletreeLog completes acquisition of 2nd property in Korea for KRW 28 billion - 14 SEP 2010

MapletreeLog completes acquisition of 2nd property in Korea for KRW 28 billion. This is a follow up to the announcement in august: Mapletreelog gains further foothold in South Korea with second property.

• Press Release

Key Points

• Further to its press release dated 22 August 2010 to acquire the property Multi-Q Centre in Gyeonggi-do, South Korea for a purchase price of KRW 28 billion (approximately S$32 million), Mapletree Logistics Trust Management Ltd., as manager of Mapletree Logistics Trust is pleased to announce that the acquisition was completed on 14 Sep 2010.
• With this acquisition, Mapletree Logistics Trust now has 88 properties with 50 properties in Singapore, 8 in Hong Kong, 6 in China, 11 in Malaysia, 10 in Japan, 2 in South Korea and 1 in Vietnam; with total book value of these properties standing at approximately $3.12 billion.

REIT Financial News - 9 SEP 2010: Notice of rights issue books closure date for AIMSAMPIReit

NOTICE OF RIGHTS ISSUE BOOKS CLOSURE DATE for AIMSAMPIReit. See press release.

Key Points

• Eligible Unitholders will receive their Rights Entitlements on a basis of seven (7) Rights Units for every twenty (20) existing Units held by each Eligible Unitholder as at the Rights Issue Books Closure Date. 
• Important dates and times in respect of the Rights Issue:

Event	Date and Time
Last day of “cum-rights” trading for the Rights Issue	15 September 2010
First day of “ex-rights” trading for the Rights Issue	16 September 2010
Rights Issue Books Closure Date	20 September 2010 at 5 p.m.
Commencement of Rights Entitlement trading period	23 September 2010
Close of Rights Entitlement trading period	1 October 2010
Last date for acceptance of and payment for Rights Units	7 October 2010
Completion of the issue of Rights Units	14 October 2010
Commencement of trading of the Rights Units on the	15 October 2010

 

Author's Note
This follows the previous announcement on 13 AUG 2010 about the
proposed acquisition, new debt facility and fully underwritten renounceable rights issue by AIMSAMPIReit.

About a Reit - Fortune Reit ِis almost a Hong Kong Reit

Overview
Fortune Reit is unique among the S-REITs. Its uniqueness is not because all its properties are in a single foreign country, i.e. Hong Kong. In fact, there are a number of S-REITs with such a profile. For examples, we have Lippo Maple Investment Trust with all its shopping malls located in Indonesia. We have Saizen Reit with all its residential properties in Japan. We have CapitaRetail China Trust with all its retail properties in China. We also have Ascendas India Trust, not officially a S-REIT but a property business trust, with all its industrial properties in India.

So what are its main differences from the rest of the 'foreign' Reits and also the S-Reits sector as a whole?

Main Differences
Following are some of its main differences from the rest at the time of this writing:

1. It is the first and only S-Reit to be dual-listed. It is currently listed in both SGX and the Stock Exchange of Hong Kong (SEHK).
2. It is the only S-Reit to be traded in a foreign currency (HKD) in SGX.
3. It is the only S-Reit to distribute its dividend in a foreign currency (HKD).

Dual Listing
Fortune Reit was officially dual listed in SEHK on 20 Apr 2010. The plan to dual list was announced on 24 Feb 2010. Prior to the announcement, Fortune Reit was trading around 3.00 HKD. Following the announcement, the price has went up sharply to above 3.70 HKD, breaking the 52 weeks high a number of times. It peaked around 3.83 HKD on the day it was dual listed. Trading volume was also much high during that period of time.

However, the boost to the share price was only apparent from the day of announcement of the planned dual listing, until the day it was dual listed. After the dual listing, there has not been much significant upwards movement to the share price, which has more or less stabilized at the range of 3.60 to 3.70 HKD at the time of this writing.

Trading in HKD
Trading in a foreign currency can be a double edged sword. If HKD strengthens against SGD, your capital gain can be magnified. But if the contrary happens, your loss can also be magnified. Following is my personal experience:

In July 2010, i bought in some units of Fortune Reit at 3.520 HKD, wanting to take advantage of the imminent semi-annual distribution some time in August. The exchange rate then for SGD vs HKD was 0.17885. So effectively I was paying SGD 0.630 per unit. I sold away the units upon XD in August 2010 at 3.600 HKD. I am not a currency expert and I do not really follow the trends of the exchange rate. So I have happily thought that other than receiving the DPU of 0.1227 HKD, I have further achieved a capital gain of 0.080 HKD per unit, or 80 HKD per lot of 1000 units. Unfortunately, during the one month period the SGD has strengthened a lot vs the HKD, and the exchange rate when I sold the units was 0.17325, which converts to about SGD 0.624. So i was actually losing money in SGD terms, although the in HKD terms I was making money. Of course overall I have still gained when the DPU was factored in, but the capital loss has eaten into my dividend profits.

DPU in HKD
Similar to the case of trading in foreign currency, the distribution in foreign currency can either boost or erase the DPU in SGD terms.  As mentioned above, I have received the semi-annual distribution of 0.1227 HKD per unit in August 2010. But with the weakening of the HKD against SGD, my expected DPU in SGD terms has also been reduced.

Impact of Exchange Rate
I have briefly traded units of Fortune Reit during its rights issue period around Sep to Oct 2009. The exchange rate then was around 0.1850. Compare to the exchange rate of 0.17325 in Aug 2010, it is a rather significant drop of about 6.5%. Of course the price of Fortune Reit happened to increase much more than 6.5% during this period of time, so overall it is still a gain if you have bought around Sep to Oct 2009. But 6.5% is still quite a significant erosion of the profits. Imagine if the price has gone south, the loss would have been much more. Even if the price has remained stagnant, you will still be losing money in SGD terms.

DPU Information

Have updated the DPU information page for Q2 2010:
http://sreitinvestor.blogspot.com/p/dpu.html

Includes DPU information such as:

• DPU for current quarter.
• DPU for previous quarter.
• DPU distribution frequency.