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Stocks to watch: CDL, Viva Industrial Trust, ST Engineering, Keppel Capital, Allianz Real Estate, Venture
THE following companies saw new developments which may affect trading of their shares on Friday:
City Developments Limited: City Developments Limited (CDL) announced on Friday morning that it has acquired a prime freehold Grade A commercial building in London for £183 million (S$328 million). The project, Aldgate House, has a net lettable area (NLA) of 211,000 square feet. It has an occupancy rate of 88 per cent and is achieving a passing yield of about 5 per cent. CDL said it will continue seeking opportunities in the United Kingdom to enhance its recurring income streams.
Viva Industrial Trust: Viva Industrial Trust Management said on Thursday night that it has been granted a six-month unsecured loan facility of S$100 million from HSBC. The loan, which was secured through a trustee of Viva Industrial Real Estate Investment Trust (VI-Reit), will be used to repay the existing S$100 million 4.15 per cent Series 001 notes due on Sept 19, 2018.
Singapore Technologies (ST) Engineering: ST Engineering has agreed to acquire General Electric's MRA Systems, LLC (MRAS) in a deal that values the company at some US$630 million. Based in Baltimore, Maryland, US, MRAS is a manufacturer of engine nacelle systems, with an engine nacelle being the casing that houses an aircraft engine. After factoring in closing adjustments, the consideration for the proposed acquisition is estimated to be US$440 million, to be funded by internal cash and external borrowings, and fully paid in cash upon completion of the deal.
Keppel Capital, Allianz Real Estate: Keppel Capital, through a fund managed by its subsidiary Alpha Investment Partners, has partnered Allianz Real Estate and another co-investor to acquire a prime office building in Shanghai for about US$48 million. The building, Bay Valley C6, is located in Shanghai’s Bay Valley Business Park and has a total above-ground gross floor area of 19,768 square metres. In the joint venture, Alpha’s Alpha Asia Macro Trends Fund III (AAMTF III) will subscribe to a 48 per cent stake in Bay Valley C6; Allianz, which is an investor of AAMTF III, will hold a 41.5 per cent stake; and the remaining 10.5 per cent stake will be held by another investor of AAMTF III.
Venture Corporation: Responding to a Thursday afternoon query from the Singapore Exchange (SGX) about unusual price movements in its shares, electronics manufacturer Venture Corporation said late that night that it was not aware of any previously unannounced information about it, its subsidiaries or its associated companies which, if known, might explain the trading. Venture added that it is not aware of any other possible explanation for the trading and confirmed that it was in compliance with listing rules. In its query at 1.57pm, the SGX noted that that was the third query issued to Venture in the past five months.