Key Points
- 275 George Street is a 30-storey Grade A freehold office development located in a prime location straddling the core retail precinct and the revitalised George Street precinct of the Brisbane’s Central Business District (“CBD”).
- The purchase consideration of the Property is A$166.0 million or approximately S$208.6 million (the “Purchase Consideration”).
- Pro Forma Distribution per Unit will increase from current 5.28 cents to 6.30 cents.
- Pro Forma Net Asset Value (“NAV”) will stay at 1.47 cents.
- The Acquisition will be funded entirely by equity with the proceeds from the rights issue completed by K-REIT Asia in November 2009.
- K-REIT Asia’s aggregate leverage is expected to improve from 27.7%
to 25.2% after the completion of the Acquisition.
hello,
ReplyDeleteTks for the info you share... very useful for Reits investors.
Hello,
ReplyDeleteWould appreciate your comments/suggestions re Frsers Comm Trust offer of Series A CPPU....."Eligible Unitholders are entitled to purchase one Series A CPPU for every 20 existing Units standing to the credit of his Securities Account as at the Books Closure Date, fractional entitlements to be disregarded, at the offer price of S$1.00 per Series A CPPU (the “Offer Price”)."
Thanks!
Have not really been following FCOT much as feel that its gearing at about 40% is still high even after the rights issue last year. The series A CPPU (preferred units) seems a bit like convertible bonds, and also a bit like preference shares, and i am not sure of the differences. The series A CPPU was offered to some institutions last year along with the rights issue. Now it is offering more units to existing FCOT unit holders. Some things i know about these preferred units:
ReplyDelete- half yearly distribution fixed at 5.5% per annum of the unit offer price of S$1 => every 6 months you get 27.5 dollars per 1000 preferred units.
- in the
sgx report last year about the series A CPPU, it was mentioned that the institutional unit holders can convert the units to FCOT units after 3 years. Not sure how this will apply for the retail unit holders that subscribe this time round.
As for existing FCOT unit holders, there could be potential dilution of DPU as part of the distributable income will be used to pay the 5.5% distribution to the preferred unit holders.
You should check the related reports in SGX to verify the information.