Saizen Reit Repays YK Shintoku loan

Saizen Reit Repays YK Shintoku loan:

• Press Release

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%.

Author's Note
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:

• Press Release

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.

Related Posts

• 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

MapletreeComm Updated Target Price

MapletreeComm Updated Target Price:

Brokerage	Recommendation	Target Price (S$)	Date
DBS Vickers	BUY	1.050	30/05/11

 

Latest updates at Stock Target Price.

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

• 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. 

Author's Note
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.

Related Posts

• All about REIT - REIT, Business Trust, and Shipping Trust 
• Former CapitaMall Trust CEO Plans S$1 Billion Singapore IPO Via REIT

Mapletreelog achieves significant milestone in South Korea

Mapletreelog achieves significant milestone in South Korea:

• Press Release
• Presentation Slides

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).

Related Posts

• 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

Asia-Pacific office rental growth eases

TODAYonline | Business | Asia-Pacific office rental growth eases