Frasers Commercial Trust (FCOT)

[choya]

Based on my experience (which might or might not be representative of the industry), the tenancy agreement will typically have a clause stating that the tenant must give the landlord 3 to 6 months of notice (from rental expiry date) of intention to renew.

I'm pretty sure FCOT had earlier notice than 22nd Sep => that's why they were able to market and secure a new tenant for 24,000 sqft to be vacated by HPE.

The fact that FCOT is still in negotiations with HPS at this late stage (~2 months from 30 Nov) suggests that HPS is probably looking to reduce their footprint in Alexandra Technopark as well.

Good point!

[choya]

BBerg reported last week that HP will be cutting 5000jobs - hence cost-savings drive is going-on.

This event we are seeing is a very true reflection of a TENANT CONCENTRATION RISK (TRC) materialising into a real negative event !!! Tenant Concentration Risks are very real,... bros,....

The 'irritating' thing here is : WHY DID HP ENTERPRISE ANNOUNCE SO LATE TO US ? We don't have a chance to mitigate this problem now ,... Moving out at end-September after announcing at EIGHT DAYS EARLIER ? Pls enlighten me if I am wrong in my presumptions here,...

Otherwise, the Landlord has every right to 'penalise' HP Enterprise with TWO MONTHS of dividends to be withheld,.... Unitholders has rights here too,....

https://venturebeat.com/2017/09/22/hewle...ff-legacy/

"Between 2002 and 2015, Hewlett-Packard announced more than 120,000 layoffs."

     Of which 60,000 since 2012 (counting the current 5K)
     http://www.businessinsider.sg/hp-layoffs...le-2015-8/

      "We are nearing the end of our 2012 restructuring program and 3,900 people exited in Q3. By the end of Q4, we expect to exceed our prior estimate of 55,000 people to exit the company by up to 5%"

https://www.reuters.com/article/us-hpent...SKCN11D2EU

"Hewlett-Packard Enterprise agreed to sell its software business to Micro Focus in a $8.8 billion deal that shrinks the Silicon Valley pioneer again"

Though not all are in Singapore, how much space does HPE still needs after the dust settles?

[WH Cheng]

HPE and HPS are not great companies to lease to anymore,... lots of risks there,.... better rent at a higher rate to 'compensate' fro the risks involved,....

[cyclone]

Financial Results for the Financial Year ended 30 September 2017 ("FY17")

Highlights :
1. Gross Revenue for FY17 was SGD 156.551 million
2. FCOT’s FY17 distributable income up 1.3% year-on-year to S$78.6 million
3. FY17 DPU of 9.82 cents in-line with FY16
4. Obtained Provisional Permission from URA for asset enhancement to rejuvenate and reposition retail podium of 18 Cross Street, China Square Central
5. Full occupancies at Caroline Chisholm Centre and 357 Collins Street provide stability
6. No refinancing requirements until August 2018
7. Distribution Per Unit for 4Q FY17 was 2.41 cent.

More details in http://infopub.sgx.com/Apps?A=COW_CorpAn...uddies.com

[cyclone]

FCOT divests 55 Market Street for S$216.8 million

Highlights :
1. Divestment at 45% premium to valuation unlocks significant value and creates headroom for future growth initiatives
2. In-line with the Manager’s proactive portfolio and capital management to deliver long-term growth
3. The sale consideration of S$216.8 million is equivalent to S$3,020 per square foot based on the building’s net lettable area
4. The sale consideration represents a 44.5% premium above the property’s valuation of S$150.0 million as at 1 July 2018 and almost 3 times the original purchase price of S$72.5 million in 2006.

Located in Raffles Place, Singapore, 55 Market Street is a 16-storey commercial building comprising 15 floors of office space and two floors of retail space on the ground floor and basement level. The property has a total net lettable area of 71,796 square feet and a committed occupancy of 87.9% as at 31 March 2018. The property constituted approximately 6.3% of FCOT’s property portfolio value as at 31 March 2018 and contributed approximately 3.5% of FCOT’s portfolio net property income for the quarter ended 31 March 2018.

More details in http://infopub.sgx.com/FileOpen/FCOT%20-...eID=515852

[cyclone]

Alexandra Technopark Secures A Major Tenant

Frasers Commercial Asset Management Ltd., in its capacity as manager of Frasers Commercial Trust ("FCOT", and as manager of FCOT), announced that British and Malayan Trustees Limited, as trustee of FCOT, had today entered into a lease agreement with Google Asia Pacific Pte. Ltd. for the latter to lease space at Alexandra Technopark.

Under the terms of the Lease, Google will take up around 344,100 square feet of space, representing approximately 33.3% of the current total net lettable area of the Property, for a term of five years commencing in the first quarter of 2020 (the “Term”). The average gross rent for the Term is comparable to recent signing rents for the Property.

Including the Lease, the committed occupancy rate for the Property is 93.7% as at the date of this announcement.

[cyclone]

Frasers Logistics & Industrial Trust and Frasers Commercial Trust Announce Proposed Merger by way of Trust Scheme
* DPU accretive transactions for FLT and FCOT Unitholders on a pro forma basis
* Create a diversified portfolio valued at S$5.7 billion
* Top-10 S-REIT by market capitalisation with index representation
* Enlarged capital base with a broadened ROFR pipeline in excess of S$5.0 billion
* Scheme Consideration of S$1.680 per FCOT Unit at premium of c. 3.5% to 1-month VWAP

More details in :
1. https://links.sgx.com/FileOpen/Joint_Ann...eID=589015
2. https://links.sgx.com/FileOpen/Acquisiti...eID=589016
3. https://links.sgx.com/FileOpen/Joint_Med...eID=589017
4. https://links.sgx.com/FileOpen/FLT_Inves...eID=589018
5. https://links.sgx.com/FileOpen/FCOT_Inve...eID=589019

[lonewolf]

BROKERAGE FEE AND ODD LOTS BUY SIDE FACILITY ARRANGEMENTS IN RESPECT OF ODD LOTS TRADING FOR A LIMITED PERIOD

Updated timetable for the delisting of FCOT and merger of FLT-FCOT

Last day of trading of the FCOT Units: 9 April 2020

Last day of trading of the FLT Units on a cum distribution basis: 9 April 2020

First day of trading of the FLT Units on an ex-distribution basis: 13 April 2020

Date of suspension of trading of the FCOT Units: 13 April 2020, on and from 9.00 a.m.

FLT books closure date to determine the entitlements to the FLT Clean-Up Distribution: 14 April 2020, at 5.00 p.m.

FCOT books closure date to determine entitlements to (a) the Trust Scheme and (b) the clean-up distribution in respect of the FCOT Units: 14 April 2020, at 5.00 p.m.

Expected Relevant Date: 14 April 2020

Expected Effective Date: 15 April 2020

Expected date for the payment of the Cash Consideration and the allotment and issuance of the Consideration Units: 24 April 2020

Expected date for commencement of trading of the Consideration Units: 24 April 2020

Expected date for the delisting of FCOT: 29 April 2020

PROPOSED MERGER OF FRASERS LOGISTICS & INDUSTRIAL TRUST AND FRASERS COMMERCIAL TRUST BY WAY OF A TRUST SCHEME OF ARRANGEMENT – UPDATE ON COURT HEARING, NOTICE OF BOOKS CLOSURE DATE AND UPDATED INDICATIVE TIMETABLE

[lonewolf]

Clean up distribution for FCOT unitholders of 2.7692c payable on 28 May 2020.

SOURCE: PROPOSED MERGER OF FRASERS LOGISTICS & INDUSTRIAL TRUST AND FRASERS COMMERCIAL TRUST BY WAY OF A SCHEME OF ARRANGEMENT – CLEAN-UP DISTRIBUTION