Corporate digest
Soilbuild Reit
SOILBUILD Business Space Reit on Wednesday posted a fourth-quarter distribution per unit (DPU) of 0.925 Singapore cent, down 36.3 per cent from 1.451 cents a year ago.
Distributable income fell 24.1 per cent to S$11.7 million for the three-month period ended Dec 31, 2019. Gross revenue decreased 11.5 per cent to S$22.8 million after contribution from 72 Loyang Way, 2 Pioneer Sector 1 and Solaris took a hit. Net property income fell 14.8 per cent to S$17.4 million.
The Reit also booked a S$10.9 million loss in fair value of investment properties and a property held for sale. This was mainly due to revaluation losses for Tuas Connection, Solaris and 2 Pioneer Sector 1. Books close on Jan 31 and distributions will be made on Feb 28.
Mapletree Logistics Trust
MAPLETREE Logistics Trust (MLT) is proposing to acquire a logistics property in South Korea from DC Deokpyung for 35.8 billion won (S$41.4 million). The property is located in Yongin-Icheon, a prime logistics cluster in the south-east region of the Seoul Metropolitan Area, the largest logistics hub in South Korea.
The property comprises four blocks of dry warehouses and has a total gross floor area of 30,485 square metres sited on freehold land of 45,935 sq m. The initial net property income yield is 5.5 per cent with potential for growth when new leases are signed.
The acquisition, which will be funded by debt, is expected to generate stabilised net property income yield of 6.4 per cent based on the property purchase price, and is expected to be accretive at the distribution level. Upon completion, MLT's aggregate leverage ratio will be 37.4 per cent, while MLT's total portfolio will comprise 144 properties with a total value of assets under management of S$8.3 billion.
The Hour Glass
A WHOLLY owned subsidiary of The Hour Glass has agreed to buy two freehold properties located in Auckland, New Zealand from two separate vendors for a purchase consideration of NZ$60 million (S$54 million).
The first property, which will be purchased from Immeuble Blacketts, is a five-storey retail and commercial office building with 9,700 square feet (sq ft) of gross lettable area. The second property, which will be bought from Securities House Trustee, has a gross lettable area of 9,000 sq ft. Both Queen Street properties are located in Auckland's prime luxury retail precinct and are currently tenanted.
The purchase will be funded by internal resources and bank borrowings. A deposit of NZ$6 million has been paid. The purchase of the properties is expected to be effected by Feb 2020.
Shangri-La Hotel
SHANGRI-LA Hotel Limited, the wholly owned Singapore subsidiary of Shangri-La Asia Limited, will sell new S$250 million 10-year bonds at par.
The senior unsecured bonds will carry a 3.5 per cent coupon rate, which is 183.7 basis points above the prevailing 10-year swap offer rate, according to the term sheet released on Wednesday. They will mature on Jan 29, 2030 are expected to be listed on the Singapore Exchange (SGX).
