REITS

Parkway Life REIT makes maiden investment in Japan with S$35m deal

Parkway Life REIT has bought a pharmaceutical product distributing facility in Japan's Chiba prefecture for S$35 million. The trust says the investment is yield-accretive, with a net initial yield of 5.3 per cent. The facility, called J-REP Matsudo II, will also be used for manufacturing pharmaceutical products. The investment is Parkway Life REIT's first overseas venture and comes just seven months...

Strategic review of MMP REIT still ongoing

The strategic review of Macquarie MEAG Prime REIT or MMP REIT is still ongoing. This is according to a filing with the SGX on Friday. It said that key shareholder Macquarie Real Estate continues to support the review. In February, Macquarie Pacific Star, the manager of MMMP REIT, announced that it was conducting a strategic review to maximise value for its unitholders. This was after unsolicited offers...

CCT to sell S$280m worth of 5-year convertible bonds

CapitaCommercial Trust (CCT) is planning to sell S$280 million worth of five-year convertible bonds. The bonds are being targeted at mainly institutional investors. CCT said it could issue more convertible bonds to raise another S$90 million. This will take the total amount raised to S$370 million. The Trust said it could also pay cash in lieu of issuing new units on conversion of the bonds. It will be...

A-REIT’s value of industrial properties gains 14% to S$484m

Ascendas Real Estate Investment Trust (A-REIT) said the value of its industrial properties gained 14 percent to about S$484 million as at 29 February 2008. The numbers are likely to boost its performance for the financial year ending in March. A-REIT said the gains were booked after independent annual valuations for 80 properties in its portfolio by consultants DTZ Debenham Tie Leung, CB Richard Ellis,...

CapitaCommercial Trust to buy 1 George Street building for S$1.2b

CapitaCommercial Trust (CCT) has been given a call option to buy the 1 George Street building for nearly S$1.2 billion. This translates to S$2,600 per square foot of net lettable area. CapitaLand will also provide yield protection to CCT, ensuring a minimum net property income of some S$50 million per annum. This means a net property yield of 4.25% per annum on the purchase price for five years until...

A-REIT buys light industrial property at Loyang Way for S$25m

Ascendas Real Estate Investment Trust (A-REIT) on Monday bought a light industrial property at Loyang Way for S$25 million. It signed a put and call option agreement with Seow Khim Polythelene, a manufacturer of consumer plastic products. Seow Khim will lease back the property for 12 years with stepped increases in rentals. It also has an option to renew the lease for another three years. A-REIT said the...

Positive outlook for global property sector in the medium term

The sub-prime crisis has intensified the necessary corrections in the property market. But according to Henderson Global Investors, there's an upside to it. The asset management firm, which has some $117 billion worth of assets under its wing, is positive on the medium term outlook for the global property sector. The likelihood of a US recession and the current global credit crisis is hurting investor...

M&As likely to hit S’pore Reit market: Fitch

Fitch Ratings expects property trusts to see more mergers and acquisitions (M&As) in the near-to-medium term, with those trading below their book values likely to become targets of acquisitions. Under certain conditions, the ratings firm said: “Such M&As could affect the credit ratings of the affected” real estate investment trusts (Reits). “Fitch believes that consolidation of the Singapore...

Ascendas acquires Goodman’s stake in Ascendas-MGM, A-REIT

Office park developer Ascendas is taking full control of the manager of Ascendas Real Estate Investment Trust (A-REIT). Under a deal announced on Wednesday, Ascendas is buying over the 40 percent stake in Ascendas-MGM Funds Management Limited that is now held by Goodman Group. Upon completion of the sale, Ascendas-MGM Funds Management Limited will become a wholly-owned subsidiary of Ascendas, and will be...

Singapore REITs still dominant in Asia despite current market conditions

Singapore's real estate investment trust (REIT) market is holding up, despite the current weak market conditions, according to the Asian Public Real Estate Association. It said that Singapore REITs are attractive to investors because of their well-diversified and cross-border assets as well as the good regulatory framework here. Singapore is a key player in Asia's REIT space. Together with Japan and Hong...

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