Just read the following article from FSM:
Singapore Property Market: Alternatives To Residential Property Investment
There's a section about S-REITs, a good write-up about the prospects of S-REITs with the current situation of rising interest rate, weakening office rental and retail markets, and change of gearing limit to 45%.
Wednesday, September 16, 2015
Saturday, April 11, 2015
THE ULTIMATE FEAR IN CLASS REUNION .. and how to deal with it
These days, thanks (or no thanks) to technology and apps like facebook and whatsapp, it is very easy for old classmates from the university days and all the way to primary school to "find" one another. Then someone will probably start a social media group of all the old classmates. But this has also given rise to the "ultimate fear" for some people.
The good
Before I start talking about the ultimate fear, let me say a few good things about such groups. First and foremost it is of course a good avenue for networking, which may extend beyond a social network into a business network as old classmates can become potential customers or business partners with their current professions. Secondly, somehow you will have a feeling that these are the people you can trust. I have no evidence for this, but to me and most people I know, the friends you made in the very early stages of your lives are the people you tend to trust more. This may be because at a very young age, we are not so protective of our vulnerabilities, and may sometimes cry and share our fears to our friends. Again no evidence for this, I feel that when you show your vulnerabilities to someone, that person will drift closer to you. Coming to the time of our professional lives, we become super protective of our vulnerabilities. At this stage of your lives, you only want to show the stronger side of yourself to people around you. Weakness and tears are reserved to a quiet corner somewhere where nobody can see you.
The ultimate fear
So what is the "ultimate fear" I am talking about? Well it is the age old fear of being not as successful as most of your old peers in your life. Normally this will refer to success in the professional career, but may also include your social life such as your marriage and your family. Again thanks (or no thanks) to technology and social media apps such as facebook and linkedin, it is very easy to find out how your old peers are doing professionally, and whether they are happily married with the albums and albums of ubiquitous photo posted. In your late thirties or forties, you may still be a struggling junior executive or engineer, and your old peer, who scored less As than you in 'O' or 'A' levels, may have shot up to be a director of a prestigious organization. You could be the most popular girl in your colleague days, and yet you have gone through a very unhappy marriage or even divorce, or you could be still looking for a partner when you are already in your forties. Then you see this old peer who used to be plain looking and have always faded into background, suddenly looking glamorous beside a suave and successful businessman husband with cute little children around them. In the past we could have just "disappeared" without a trace if we feel that we are a failure in life. In the age of social media, we can no longer hide, and this is a reality we have to face today. With a phone number or a email address, you can be easily found and be added to an old peers' group. The social media has in fact magnified this fear as we are now thoroughly exposed to one another.
I am not an expert in psychology, but I have personally struggled with the above situation, and thought it will be good if I can share some ways in which I have dealt with it.
Stop comparing one single area of our lives
There is a tendency for us to compare an area of our lives in which we are weaker while others are more successful. I wouldn't and shouldn't consider myself a failure in life. I have a happy family with my wonderful wife and children. My career is quite alright, and I have no issues supporting the whole family with a fairly comfortable life. But as a social being, I cannot help but compare my career with my more successful old peers. Some have already borne the titles of director, chairman, professor, etc, while I am still around the level of a junior manager. Because of this kind of comparison, I am making my life miserable, and totally ignore the value of a happy family. This is a mistake I have learned. It is very hard to be successful in all areas of your life with limited time, energy and opportunities. You could have made a conscious decision in the past to focus in a particular area of your life. So why just look at an old peer's area of success and focus so much upon it?
Stop comparing at all
Yes, not only you should not compare a particular area of our lives to others, you should not even compare in the first place. These people are your old friends, and you should just treat them as that. They are not there as yardsticks to measure your success in life.
They are friends that can help you
Yes not only should you stop comparing, your should treat them as "Allies". As mentioned above, these are friends whom you will probably trust. You never know someday they can be there to help you, or you may be in a position to help them.
Past Performance Is Not an Indication of Future Results
Doesn't this sound like a financial advice? This is in fact a key struggle for me. I was a top student in top schools with top results. However, I am way behind in career than some old peers who have done worse than me in school. This has always been a very very sore point I find it very hard to struggle with. But I have to recognize that these friends have probably struggled with blood and sweat to reach where they are now.
Wake up call?
What if you really really can't help but feel that you are really really weak in an area of your life compared to your old peers? This could contradict with some of my points above, but sometimes it could be a genuine case that you have really not put enough effort into a particular area of your life. If it is career, may be it's a wake up call to upgrade yourself? If you have the largest beer belly among your old peers, may be it's time to diet, exercise and cut down on beer (just kidding)? This could also serve as a wake up call to readers of this article who are still in their twenties and starting out on their career. Think about 10 to 20 years later when you are in your forties and meeting up with old classmates. If you want to be perceived as successful in your career, there are no two ways about it except to work with blood and sweat and seizing opportunities as they come along. So if you really must compare, do it positively, and view your successful peers as role models instead of someone there to put you down.
Alright, my cute little kids have already waken up and are "begging" me to play with them. I shall continue this in another time ... hope that the above points will be useful to those who are facing the similar struggles.
Wednesday, October 15, 2014
MAS releases consultation paper to review policy on Reits
The Monetary Authority of Singapore has recently release a consultation paper to review various policies with regards to S-REITs. Other than policy review that touches on the statutory duty of the REIT manager and its directors to prioritize the interests of REIT investors over those of the REIT manager and its shareholders in the event of a conflict of interest, following are other major changes proposed:
Gearing Limit of 45% of Assets
Currently the gearing limit of the REITs is 35% without credit rating and 60% with credit rating (see All About REIT - The Basics Part 4: Gearing Limit). MAS has proposed a single gearing limit of 45 per cent whether it is with or without credit rating. There will no longer be a separate 60% gearing limit with credit rating. Currently most of the REITs have a gearing of around 30 to 40%. Based on past history, when a REIT reaches a gearing close to or above 40%, it will go by the way of rights issue if it requires funding for acquisition. Very seldom do we see REITs reaching a gearing limit above 50%.
Development limit to be raised to 25%
Development limit for a REIT will be raised to 25 per cent of its deposited property. Currently the limit is set at 10% (see All about REIT - REIT as a Property Developer). To date I think only Ascendas Reit and CapitaMall Trust have ever been involved in property development activities. Their asset values are the highest among the REITs, while for the smaller REITs the 10% will be too low for them to be engaged in property development activities. Raising this limit to 25% might bring about the tipping point for some REITs to engage in development projects as alternative stream of income on top of the rental income.
The consultation paper will be open for comments till 10 November 2014.
Development limit to be raised to 25%
Development limit for a REIT will be raised to 25 per cent of its deposited property. Currently the limit is set at 10% (see All about REIT - REIT as a Property Developer). To date I think only Ascendas Reit and CapitaMall Trust have ever been involved in property development activities. Their asset values are the highest among the REITs, while for the smaller REITs the 10% will be too low for them to be engaged in property development activities. Raising this limit to 25% might bring about the tipping point for some REITs to engage in development projects as alternative stream of income on top of the rental income.
The consultation paper will be open for comments till 10 November 2014.
Tuesday, September 6, 2011
Friday, June 10, 2011
A-REIT awarded Business Park site at Fusionopolis for S$110 million
A-REIT awarded Business Park site at Fusionopolis for S$110 million :
Key Points
Key Points
- Further to the release “A-REIT tenders for Business Park Site at Fusionopolis for S$110 million” made by Ascendas Funds Management (S) Limited (the “Manager”) in its capacity as the Manager of Ascendas Real Estate Investment Trust (“A-REIT”) on 20 May 2011, the Manager is pleased to announce that Jurong Town Corporation (“JTC”) has awarded A-REIT the said site (the “Site”) at Fusionopolis for S$110 million.
- Upon completion, expected in 3QFY2013/14, this development will strengthen A-REIT’s leading position in the Business & Science Parks segment and bring about economies of scale in operations. The high quality specification and good location of the proposed development will be attractive to target potential users.
- In addition, this development will allow A-REIT to further widen its product offerings in catering to the knowledge and value-based type industries and gives it an opportunity to further diversify its customer base.”
Saturday, June 4, 2011
Standard & Poor's Reaffirms Cambridge Industrial Trust ("CIT") BBB-/Stable/-- Rating
Standard & Poor's Reaffirms Cambridge Industrial Trust ("CIT") BBB-/Stable/-- Rating:
Key Points
Key Points
- Cambridge Industrial Trust Management Limited, as manager of CIT, would like to announce that Standard & Poor's has reaffirmed the BBB-/Stable/-- credit rating of CIT in its report dated 1 June 2011.
Thursday, June 2, 2011
CacheLog marks foray into China with purchase of chemical warehouse facility
CacheLog marks foray into China with purchase of chemical warehouse facility for RMB 71.0 million:
Key Points
This is the second acquisition by CacheLog since its IPO, and a first from its sponsor CWT. It is also the first overseas acquisition.
Key Points
- Cache is acquiring a chemical warehouse facility in Shanghai from CWT Limited (“CWT”) via an acquisition and leaseback arrangement.
- This acquisition marks Cache’s entry into China.
- The property is located in Jinshan District within the successful Shanghai Chemical Industrial Park (“SCIP”), one of the largest petrochemical bases in Asia.
- Cache’s newly purchased facility is sited on a land area of 33,506 square metres, with a built-up gross floor area of about 13,547 square metres.
- CWT is the Sponsor of Cache and the CWT properties in Asia-Pacific fall under the right of first refusal granted to Cache at the time of the IPO in April 2010.
- This transaction marks the first successful acquisition of a CWT asset since the IPO.
- The consideration paid for the property is RMB 71.0 million (or approximately S$13.5 million).
- CWT will leaseback the facility for a period of three years with an option for a further three years.
- The net property income yield of 8.6% is higher than the Cache present portfolio of 7.6%.
- The average of the two valuations provided by CB Richard Ellis and Knight Frank Petty, who acted on behalf of the Manager and the Trustee respectively, is RMB 76.6 million (or approximately S$14.6 million).
- The acquisition is accretive at the distribution level, with the annualised pro forma financial effect on Cache’s DPU for FY2011 expected to be an additional 0.03 cents per unit after applicable taxes in China, and offers the potential for future capital appreciation.
- The transaction also allows investors to gain exposure to a segment of the market which they may not be able to do so efficiently.
- Post-completion, Cache’s leverage will rise from 27.9% to 29.2%.
This is the second acquisition by CacheLog since its IPO, and a first from its sponsor CWT. It is also the first overseas acquisition.
Wednesday, June 1, 2011
Saizen Reit Repays YK Shintoku loan
Saizen Reit Repays YK Shintoku loan:
Key Points
The term "unencumbered" here means that the properties are not currently under any mortgage agreements, or are being used as collateral for loans.
Related Posts
Key Points
- The manager Saizen REIT is pleased to announce that the loan of YK Shintoku had been fully repaid on 31 May 2011.
- Following the completion of the Repayment and the cancellation of the mortgage over YK Shintoku’s property portfolio, YK Shintoku’s portfolio of 27 properties which is valued at approximately JPY 4.3 billion1 (S$65.6 million) will become unencumbered.
- Together with the property portfolios of YK Keizan, YK Shingen and GK Chosei, the total value of Saizen REIT’s unencumbered properties will amount to approximately JPY 14.9 billion (S$227.5 million).
- After the Repayment, Saizen REIT’s borrowings comprise five loans amounting to approximately JPY 9.0 billion (S$137.4 million), with the nearest loan maturity due in June 2013.
- Saizen REIT’s gearing after the Repayment is approximately 24%.
The term "unencumbered" here means that the properties are not currently under any mortgage agreements, or are being used as collateral for loans.
Related Posts
- Saizen Reit Divests Alpha Shinonome and Rise Gofuku
- Saizen divests Studio City from the YK Shingen portfolio
- Saizen divests Art Side Terrace and KN 21 Shiragane
- Saizen divests Escort South 11
- Saizen Reit Divests of Club House Kikugaoka
- Saizen Reit - Divestment of Johnan Building III and Wealth Meinohama
Saizen Reit Divests Alpha Shinonome and Rise Gofuku
Saizen Reit Divests Alpha Shinonome and Rise Gofuku:
Key Points
Key Points
- The manager Saizen REIT wishes to announce the divestments of Alpha Shinonome and Rise Gofuku from the property portfolio of Yugen Kaisha (“YK”) Shintoku.
- YK Shintoku has, on 31 May 2011, entered into a sale and purchase agreement for the divestment of Alpha Shinonome (“ASN”) to an independent private investor (the “ASN Buyer”) for a cash consideration of JPY 74,402,500 (S$1.1 million 1 ) (the “ASN Sale Price”). The divestment of ASN was completed on the same day upon the payment of the full amount of the ASN Sale Price by the ASN Buyer.
- ASN, located in Hiroshima, was built in December 1984 and comprises 27 residential units. It contributed about 0.2% (or approximately JPY 9.5 million) of Saizen REIT’s annual revenue in the financial year ended 30 June 2010 (“FY2010”).
- YK Shintoku has, on 31 May 2011, entered into a sale and purchase agreement for the divestment of Rise Gofuku (“RG”) to an independent private investor (the “RG Buyer”) for a cash consideration of JPY 234,780,942 (S$3.6 million) (the “RG Sale Price”).
- The divestment of RG was completed on the same day upon the payment of the full amount of the RG Sale Price by the RG Buyer.
- RG, located in Kumamoto, was built in April 2006 and comprises 34 residential units, 1 commercial unit and 2 car parking units. It contributed about 0.6% (or approximately JPY 26.3 million) of Saizen REIT’s annual revenue in the FY2010.
- Given the small sizes of ASN and RG relative to the entire portfolio of Saizen REIT, the Current Divestments are not expected to have any material impact on the financial position of Saizen REIT.
- Saizen divests Studio City from the YK Shingen portfolio
- Saizen divests Art Side Terrace and KN 21 Shiragane
- Saizen divests Escort South 11
- Saizen Reit Divests of Club House Kikugaoka
- Saizen Reit - Divestment of Johnan Building III and Wealth Meinohama
Monday, May 30, 2011
MapletreeComm Updated Target Price
MapletreeComm Updated Target Price:
Latest updates at Stock Target Price.| Brokerage | Recommendation | Target Price (S$) | Date |
| DBS Vickers | BUY | 1.050 | 30/05/11 |
Saturday, May 28, 2011
Perennial China Retail Trust plans to raise S$776.2m from IPO
Perennial China Retail Trust plans to raise S$776.2m from IPO - Channel NewsAsia
Key Points
The business trust was supposed to list in March but has withdrawn the plan due to adverse market conditions. For this IPO, the unit price is set at the lowest end of the indicative price range from S$0.70 to S$0.76 due to "market volatility" in recent weeks.
PRCT is a property based business trust like Ascendas India Trust. While PRCT is focused on retail properties in China, Ascendas India Trust is focused on industrial properties in India. A business trust has some fundamental differences from a Reit. For more details, you may read an earlier article I have written about the subject matter - All about REIT - REIT, Business Trust, and Shipping Trust.
Some things to consider with regards to this IPO:
Key Points
- Perennial China Retail Trust (PCRT) to raise S$776.2m in IPO.
- Units are priced at S$0.70 each.
- The business trust will develop retail space in China.
- Initial S$1.1 billion property portfolio of five properties in Shenyang, Foshan and Chengdu.
- Acquisition of around S$3.0 billion worth of assets in the pipeline.
- Projected annualised dividend yield of 5.30% for 2011 and 5.51% for 2012.
- PRCT is expected to commence trading on the SGX on 9 June.
The business trust was supposed to list in March but has withdrawn the plan due to adverse market conditions. For this IPO, the unit price is set at the lowest end of the indicative price range from S$0.70 to S$0.76 due to "market volatility" in recent weeks.
PRCT is a property based business trust like Ascendas India Trust. While PRCT is focused on retail properties in China, Ascendas India Trust is focused on industrial properties in India. A business trust has some fundamental differences from a Reit. For more details, you may read an earlier article I have written about the subject matter - All about REIT - REIT, Business Trust, and Shipping Trust.
Some things to consider with regards to this IPO:
- The projected yield of 5.3% for 2011 is not that attractive if we compare it to the most of the S-Reits and other business trust. Capita Retail China Trust, a reit that is also focused in the retail sector of China, currently yields about 6.9%, while Ascendas India Trust, another property business trust, currently yields about 6.7%.
- The recent IPO performances of Hutchison Port Holdings Trust (HPH Trust) and Mapletree Commercial Trust have been disappointing, with the share price falling below IPO price since their listings.
- Mr Market is currently not in a very good mood due to the Greek debt crisis, the end of QE2, etc.
- There has been extensive cooling measures being taken in China to tackle inflation and cool the property market. China related property stocks have generally not performed too well, example being Capitaland, which has recently hit its 52 weeks low in share price.
- In terms of management it should be in very good hands as the CEO of PCRT, Mr Pua Seck Guan, was formerly the chief executive of the CapitaMall Trust and also the Capitaland retail chief.
- All about REIT - REIT, Business Trust, and Shipping Trust
- Former CapitaMall Trust CEO Plans S$1 Billion Singapore IPO Via REIT
Thursday, May 26, 2011
Mapletreelog achieves significant milestone in South Korea
Mapletreelog achieves significant milestone in South Korea:
Key Points
Key Points
- Mapletree Logistics Trust Management Ltd. (“MLTM”), as Manager of Mapletree Logistics Trust (“MapletreeLog”), has today signed a Conditional Sale and Purchase Agreement with Korea Port Processing Co. Ltd (“KPPC”) for the acquisition of KPPC Pyeongtaek Centre in Pyeongtaek-si, Gyeonggi-do, South Korea (the “Property”). The Property will be acquired at a purchase price of KRW 75.6 billion (approximately S$85.9 million).
- Comprising two blocks of dry goods warehouses with a total gross floor area of about 100,900 sqm, the Property is one of the largest facilities in the Gyeonggi-do province. There is also potential for organic growth as it has yet to maximise its permissible plot ratio, which will yield an additional gross floor area of close to 20,000 sqm. This can be tapped upon to meet additional requirements in the future.
- The Property provides an initial net property income yield of 8.6%. The vendor, KPPC, will lease the entire property for a period of 5 years with an annual rental escalation of 3.0%.
- The acquisition is expected to be completed by 3Q 2011.
- Upon its completion, MapletreeLog’s portfolio will increase to 98 properties and the book value of the total portfolio would be approximately S$3.7 billion.
- Given the sizeable acquisition, the contribution of South Korea to the total portfolio’s gross revenue is expected to increase from 2.7% to 5.6%. Consequently, KPPC will be the first Korean customer in MapletreeLog’s list of top ten customers; thus further diversifying its customer base.
- MapletreeLog has sufficient financial flexibility and capacity to fund the acquisition. Assuming that the purchase price and other acquisition costs of the Property are fully funded by debt, MapletreeLog’s gearing level will increase to about 41% (after taking into account all acquisitions and divestments announced to date).
- MapletreeLog Q1 2011 Quarterly Earnings Report
- MapletreeLog acquires Iljuk Gyeonggi Centre in South Korea
- MapletreeLog completes of Acquisition of 44 & 46 Changi South Street 1, Singapore
- Mapletreelog acquires singapore property for S$16.8 million - 2 DEC 2010
- MapletreeLog acquires N S Tang Building - 24 DEC 2010
Wednesday, May 25, 2011
Tuesday, May 24, 2011
Lippo Karawaci acquires interests in LMIRT and trust manager from Mapletree and Lippo for S$197.4 million
Lippo Karawaci acquires interests in LMIRT and trust manager from Mapletree and Lippo for S$197.4 million - S$2.4 billion of mall assets to be injected into LMIRT over next three years:
Key Points
LPKR was initially founded on a vision to impact lives through the development of well-planned sustainable independent townships with green environments and first class physical and social infrastructure. Over more than a decade, LPKR has proven itself as a highly trusted property developer with the most recognisable brand name and owner of the largest diversified landbank and pioneering projects in strategic locations throughout Indonesia.
Through a merger of eight property related companies in 2004, LPKR has expanded its business portfolio to encompass urban development, large scale integrated development, retail malls, healthcare, hotel and leisure, as well as fee-
based income portfolio. Its premier private hospital group is the only one achieving world class standards.
LPKR is listed on the Indonesian Stock Exchange with a market capitalisation of
Rp16.65 trillion or US$1.95 billion.
Author's Note
The above transactions bring to an end the joint venture between MapleTree and Lippo Group in the management of Lippo Maple Retail Trust. The retail property sector in Indonesia is not a key focus market for Mapletree, and it will focus its resources to grow its key markets in Singapore, China, Japan, India and Vietnam.
Key Points
- PT Lippo Karawaci Tbk. ("LPKR"), Indonesia's largest listed property company by total assets, revenues and net profit, will emerge as the largest shareholder of Lippo-Mapletree Indonesia Retail Trust (“LMIRT”) and 100% shareholder of the LMIRT Mgt, following a series of transactions totalling S$197.4 million (equivalent to US$165.5 million).
- LPKR, through its wholly-owned subsidiaries, had signed definitive agreements to purchase 97,853,918 units (approximately 9.02%) in LMIRT and 40.0% in Lippo-Mapletree Indonesia Retail Trust Management Limited (“LMIRT Mgt”) from the Mapletree Group entities (“Mapletree”). The purchase agreement for the 9.02% was signed by LPKR subsidiary, Bridgewater International Ltd (“BIL”). It had also contracted to buy over a further 18.22% interest in LMIRT, which is currently held through an affiliate of LPKR.
- It had also contracted to buy over a further 18.22% interest in LMIRT, which is currently held through an affiliate of LPKR.
- At S$0.56 per Unit, representing a 2.7% premium to the May 20, 2011 closing price of S$0.545 per Unit, the acquisitions for LMIRT add up to S$165.5 million.
- In a parallel transaction, another LKPR subsidiary, Peninsula Investment Limited (“PIL”) will be acquiring from Mapletree the remaining 40% interest in LMIRT Mgt for a cash consideration of S$31.9 million. Concurrent completion for these transactions is anticipated and expected in the next 21 business days.
- After the conclusion of these transactions, LPKR will effectively own 29.5% interest in LMIRT and 100% of LMIRT Mgt and become LMIRT’s largest shareholder, as well as full ownership in LMIRT Mgt. These transactions will position LPKR as the largest mall owner/manager in Indonesia and among the largest in Southeast Asia.
- LKPR plans to carry through its plan to inject S$2.4 billion of mall assets into LMIRT over the next three years.
- This acquisition will put LMIRT and LMIRT Mgt fully aligned with LPKR’s Lippo Malls Group, and provide LMIRT with a strong pipeline and the opportunity to grow its asset base to S$4 billion in the next 3 years.
LPKR was initially founded on a vision to impact lives through the development of well-planned sustainable independent townships with green environments and first class physical and social infrastructure. Over more than a decade, LPKR has proven itself as a highly trusted property developer with the most recognisable brand name and owner of the largest diversified landbank and pioneering projects in strategic locations throughout Indonesia.
Through a merger of eight property related companies in 2004, LPKR has expanded its business portfolio to encompass urban development, large scale integrated development, retail malls, healthcare, hotel and leisure, as well as fee-
based income portfolio. Its premier private hospital group is the only one achieving world class standards.
LPKR is listed on the Indonesian Stock Exchange with a market capitalisation of
Rp16.65 trillion or US$1.95 billion.
Author's Note
The above transactions bring to an end the joint venture between MapleTree and Lippo Group in the management of Lippo Maple Retail Trust. The retail property sector in Indonesia is not a key focus market for Mapletree, and it will focus its resources to grow its key markets in Singapore, China, Japan, India and Vietnam.
Saturday, May 21, 2011
A-REIT submits S$110m bid for business park site at Fusionopolis - Channel NewsAsia
A-REIT submits S$110m bid for business park site at Fusionopolis - Channel NewsAsia
SINGAPORE : Mainboard-listed Ascendas REIT (A-REIT) has submitted a S$110 million bid for a business park site at Fusionopolis.
A-REIT said this property, together with its existing properties within the one-north region and the neighbouring Science Park I and II, will enhance its market leadership position in the Business & Science Parks segment.
The trust is planning to develop the business park site into a modern suburban business facility, comprising 60 per cent business park space and 40 per cent office space.
It also hopes to attract tenants in the Infocomm Technology and media industries, as well as R&D activities in Physical Science and Engineering.
A-REIT said the total development cost of the property is not expected to exceed 3.3 per cent of A-REIT's deposited property as at 31 March 2011.
The 6,253 square metre site, with a 60-year land lease tenure and an allowable plot ratio of 4.0 times, is located in the one-north master plan region.
The tender for the site was launched under the Government Industrial Land Sales Programme by the Jurong Town Corporation.
SINGAPORE : Mainboard-listed Ascendas REIT (A-REIT) has submitted a S$110 million bid for a business park site at Fusionopolis.
A-REIT said this property, together with its existing properties within the one-north region and the neighbouring Science Park I and II, will enhance its market leadership position in the Business & Science Parks segment.
The trust is planning to develop the business park site into a modern suburban business facility, comprising 60 per cent business park space and 40 per cent office space.
It also hopes to attract tenants in the Infocomm Technology and media industries, as well as R&D activities in Physical Science and Engineering.
A-REIT said the total development cost of the property is not expected to exceed 3.3 per cent of A-REIT's deposited property as at 31 March 2011.
The 6,253 square metre site, with a 60-year land lease tenure and an allowable plot ratio of 4.0 times, is located in the one-north master plan region.
The tender for the site was launched under the Government Industrial Land Sales Programme by the Jurong Town Corporation.
Saturday, May 14, 2011
Saizen Reit Q1 2011 Quarterly Earnings Report
Saizen Reit Q1 2011 Quarterly Earnings Report:
Key Points
There is no distribution this quarter as the Reit adopts a semi-annual distribution policy. The next distribution payment is expected to take place in September 2011 in respect of distributable cash accumulated in the six months financial period ending 30 June 2011.
The previous distribution was 0.52 cents per Unit, paid on 8 March 2011.
Related Posts
Key Points
- Revenue and income decreased year-on-year and quarter-on-quarter for the third quarter ended 31 March 2011 (“3Q FY2011”), due mainly to the sale of 18 properties between September 2010 and March 2011, of which six properties were sold in 3Q FY2011.
- The average occupancy rate was 91.0% in 3Q FY2011, as compared to 91.8% in the third quarter ended 31 March 2010 (“3Q FY2010”) and 90.8% in the previous quarter ended 31 December 2010 (“2Q FY2011”). Overall rental reversion of new contracts entered into in 3Q FY2011 was marginally lower by about 3.6% (3Q FY2010 and 2Q FY2011: lower by about 4.7% and 3.2% respectively) from previous contracted rates.
- Loan of YK Shintoku to be fully repaid by end of May 2011. YK Shintoku and YK Shingen divested three properties each in 3Q FY2011, at a weighted average discount of about 2% to valuation. In aggregate, these six properties contributed a gross revenue of JPY 28.0 million (S$0.4 million), or 2.9% of the Group’s total revenue, in 3Q FY2011. Partial loan repayment using sale proceeds as well as principal repayments made from YK Shintoku’s operations cash flow in 3Q FY2011 had reduced the loan balance of YK Shintoku to JPY 4.8 billion (S$73.1 million) as at the end of March 2011. YK Shintoku has commenced a repayment planwhich will enable its loan to be fully repaid by the end of May 2011.
- NAV per unit of $0.34 as at 31 Mar 2011.
There is no distribution this quarter as the Reit adopts a semi-annual distribution policy. The next distribution payment is expected to take place in September 2011 in respect of distributable cash accumulated in the six months financial period ending 30 June 2011.
The previous distribution was 0.52 cents per Unit, paid on 8 March 2011.
Related Posts
- Results Release
- DPU Information Page
- Saizen Reit Q3 2010 Quarterly Earnings Report
- Saizen Reit Q4 2010 Quarterly Earnings Report
Wednesday, May 11, 2011
Plife Updated Target Price following Q1 2011 result release
Plife Updated Target Price following Q1 2011 result release:
Latest updates at Stock Target Price.| Brokerage | Recommendation | Target Price (S$) | Date |
| DMG | NEUTRAL | 1.83 | 06/05/11 |
| DBS Vickers | BUY | 1.95 | 05/05/11 |
| CIMB | OUTPERFORM | 1.98 | 05/05/11 |
Saizen divests Studio City from the YK Shingen portfolio
Saizen divests Studio City from the YK Shingen portfolio:
Key Points
Key Points
- YK Shingen has, on 10 May 2011, entered into a conditional sale and purchase agreement for the divestment of Studio City (“SC”) to an independent private investor (the “SC Buyer”) for a cash consideration of JPY 175,000,000 (S$2.7 million) (the “SC Sale Price”).
- SC, located in Sapporo, was built in March 1985 and comprises 51 residential units, 1 commercial unit and 12 car parking units. It contributed about 0.6% (or approximately JPY 26.8 million) of Saizen REIT’s annual revenue in the financial year ended 30 June 2010 (“FY2010”).
- Given the small size of SC relative to the entire portfolio of Saizen REIT, the Current Divestment is not expected to have any material impact on the financial position of Saizen REIT.
- Saizen divests Art Side Terrace and KN 21 Shiragane
- Saizen divests Escort South 11
- Saizen Reit Divests of Club House Kikugaoka
- Saizen Reit - Divestment of Johnan Building III and Wealth Meinohama
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