Keppel Land

Keppel Reit too.

(18-09-2014, 04:14 PM)edragon Wrote: Keppel Reit too.

My guess is they're selling MBFC phase 3 to Kep Reit to boost their earnings for the year, in view of the bleak residential market? Rights issue coming up for KREIT?

UBS Asean - KPLD/KREIT: Finally buying MBFC3‏
Thursday, September 18, 2014
KPLD/KREIT: Finally buying MBFC3
KREIT SP - $1.23 NEUTRAL TP $1.21; KPLD SP - $3.4 BUY TP $4.06
KREIT is finally buying KPLD’s one-third stake in MBFC3. It will place out new shares at S$1.17 (5% disc) to raise a total of S$413m. Pricing is unlikely to be cheap but will remove the overhang. This may also lead to a special dividend from KPLD.
· Fund raising. KREIT will place out 195m new shares at $1.17 (5% disc) to raise S$228m. It will separately issue S$185m of new units to KPLD to help fund the acquisition - total is S$413m.
· Valuation.DBS bought 30% of MBFC3 in Dec 2012 for S$1.035bn (S$2,555 psf). The recent val’n for MBFC1 has hit S$2,600-2,700 while recently, Straits Buiding was sold for S$2,800 psf. As such, we reckon KREIT may have to pay S$2,850 psf for MBFC3.
· Funding. At S$2,850 psf for MBFC3, the total outlay is S$1.3bn. We believe this will be funded by S$512m proceeds from PruTower, S$413m fund raising and the rest from loans.
· Overhang removed. KREIT (+3% YTD) has lagged both CCT (+13% YTD) and SUN (+16%). It is trading at a FY15 yield of 5.8% (vs CCT 5.3% and SUN 5.9%). Of the three, Michael still prefer CCT (growth from CapitaGreen) and SUN (AEI at Phase3 of Suntec Mall) over KREIT (loss of income support from OFC).
· Special div from KPLD? KPLD may receive S$1.3bn. If we assume net proceed of S$800m after paying off debt, this is 5¢ per share. It will raise KPLD’s yield from 3% to 4.5%.

Minx right on the $$$! *salute sia*

Keppel Reit was halted pending announcement.

Keppel REIT buying one third interest from Keppel Land for S$1,248.0 million.

Launching private placement of Keppel REIT shares.

Next, I guess will be divestment of Bugis Junction towers, in a year or two

Is this a WIN - WIN situation for both K-REIT and Keppel Land ?

Or is it just another SHOVE-IT-DOWN-YOUR-THROAT type of transaction ?

Sorry, but I think you got the decimal point wrong.
Based on my Layman calculation :
$800,000,000 = 80,000,000,000¢
divided by 1,545,592,000 shares,
should be 51.7¢ per share.

Huat ah !

(18-09-2014, 04:52 PM)cfa Wrote: UBS Asean - KPLD/KREIT: Finally buying MBFC3‏
Thursday, September 18, 2014
KPLD/KREIT: Finally buying MBFC3
KREIT SP - $1.23 NEUTRAL TP $1.21; KPLD SP - $3.4 BUY TP $4.06
KREIT is finally buying KPLD’s one-third stake in MBFC3. It will place out new shares at S$1.17 (5% disc) to raise a total of S$413m. Pricing is unlikely to be cheap but will remove the overhang. This may also lead to a special dividend from KPLD.
· Fund raising. KREIT will place out 195m new shares at $1.17 (5% disc) to raise S$228m. It will separately issue S$185m of new units to KPLD to help fund the acquisition - total is S$413m.
· Valuation.DBS bought 30% of MBFC3 in Dec 2012 for S$1.035bn (S$2,555 psf). The recent val’n for MBFC1 has hit S$2,600-2,700 while recently, Straits Buiding was sold for S$2,800 psf. As such, we reckon KREIT may have to pay S$2,850 psf for MBFC3.
· Funding. At S$2,850 psf for MBFC3, the total outlay is S$1.3bn. We believe this will be funded by S$512m proceeds from PruTower, S$413m fund raising and the rest from loans.
· Overhang removed. KREIT (+3% YTD) has lagged both CCT (+13% YTD) and SUN (+16%). It is trading at a FY15 yield of 5.8% (vs CCT 5.3% and SUN 5.9%). Of the three, Michael still prefer CCT (growth from CapitaGreen) and SUN (AEI at Phase3 of Suntec Mall) over KREIT (loss of income support from OFC).
· Special div from KPLD? KPLD may receive S$1.3bn. If we assume net proceed of S$800m after paying off debt, this is 5¢ per share. It will raise KPLD’s yield from 3% to 4.5%.

Kreit is really a dumping ground of Keppel Land.

However, clearly investors know about that and hence price performance has been extremely inferior relative to CCT despite constant expansion in portfolio...

Odd Lots vested
GG

(18-09-2014, 06:37 PM)cfa Wrote: Kreit is really a dumping ground of Keppel Land.