ESR-REIT (formerly Cambridge Industrial Trust)

[Shulu]

Cambridge delivers yet again.

Presentation slides: http://cambridgeindustrialtrust.listedco...09C2.1.pdf

Book Closure for Distribution:
http://www.cambridgeindustrialtrust.com/ir_home.html

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Unitholders gain as CIT cuts fee for manager

New formula cuts performance fee by up to 50 per cent
Published on Apr 18, 2014 1:33 AM


CIT'S PORTFOLIO INCLUDES: Cambridge Industrial Trust, an independent Reit, has a portfolio of 48 properties in Singapore, including a six-storey building at 30, Marsiling Industrial Estate Road 8 and a five-storey block at 16, Tai Seng Street (above). -- PHOTOS: CAMBRIDGE INDUSTRIAL TRUST


By Rachael Boon

CAMBRIDGE Industrial Trust (CIT) is slashing its manager's performance fee by millions of dollars so more cash can go back to unitholders.

The manager, Cambridge Industrial Trust Management, said yesterday that it will change the formula it uses to calculate the half-yearly fees.

It is made up of two "tiers". Tier 2 will be cut from 15 per cent to 5 per cent, a move that will reduce the overall performance fee by up to 50 per cent.

Under the old formula, performance fees for the six months to June 30 last year would have been $27.7 million - a sizeable amount considering that CIT's gross revenue during the period was $49.4 million.

The manager waived half of what it was entitled to and accepted payment of $13.9 million on July 7 last year.

Under the new formula, the performance fees would have amounted to $14.1 million.

Board chairman Chua Yong Hai said: "As you can recall, the trust strongly outperformed the benchmark index last year, we were entitled to a performance fee of $27.7 million. The board took the decision to reduce this by 50 per cent to $13.9 million."

He said the board's decision was in response to feedback from unitholders over the performance fees in the first half of 2013.

CIT, an independent industrial real estate investment trust (Reit), has a portfolio of 48 properties in Singapore, including a five-storey block at 16, Tai Seng Street, and a six-storey building at 30, Marsiling Industrial Estate Road 8.

Ms Caroline Fong, CIT head of investor relations and corporate communications, said there was some feedback about the difference in methodology for the performance fee calculations compared with other Reits.

"Instead of being rewarded by our own merits, we are benchmarked against nine of the largest Singapore Reits that make up majority of the Singapore Reit market cap. To outperform them, the total returns - share price appreciation plus dividends paid - of CIT must exceed that of the benchmark index for the same period."

The manager is entitled to the fee when CIT's total return exceeds the benchmark index.

She added that the adjustment ensures a more equitable distribution when the trust outperforms.

But Mr Loi Pok Yen, group chief executive of logistics firm CWT, which has a stake in CIT, feels that the performance fee should be measured based on what can be attributed to the Reit, such as distribution per unit (DPU), gross revenue or rental.

"If you benchmark it against another Reit and fall, then what? In terms of absolute returns to the shareholders, they are still down. This is a Reit, not an equity fund.

"I'm sure they've got their own reasons (for the change). At the end of the day, all the unitholders will have to make the decision to vote on it.

"Cambridge is doing quite well... as long it doesn't propose anything which is hugely detrimental and dilutive to shareholders, I'm all in favour of it."

rachaelb@sph.com.sg



Background story

CIT'S PORTFOLIO INCLUDES: HALVED

As you can recall, the trust strongly outperformed the benchmark index last year, we were entitled to a performance fee of $27.7 million. The board took the decision to reduce this by 50 per cent to $13.9 million.

- Board chairman Chua Yong Hai

[egghead]

Kudos to the trust management.

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http://www.businesstimes.com.sg/companie...3-dpu-dips

Cambridge Industrial Trust's Q3 DPU dips
By
Lee Meixianleemx@sph.com.sg@LeeMeixianBT
24 Oct5:50 AM
Singapore

THE distribution per unit (DPU) for Cambridge Industrial Trust (CIT) in the third quarter ended Sept 30 dipped 0.1 per cent from 1.251 Singapore cents to 1.25 Singapore cents, even as its distributable income rose 2.5 per cent to S$15.8 million.

The drop in DPU was due to

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http://www.businesstimes.com.sg/companie...old-at-350

CIT's S$100m 4-year bonds sold at 3.50%
By
Siow Li Senlisen@sph.com.sg@SiowLiSenBT
30 Oct5:50 AM
Singapore

CAMBRIDGE Industrial Trust (CIT) yesterday sold S$100 million four-year senior unsecured bonds, the Royal Bank of Scotland said.

Orders were in excess of S$165 million, allowing the company to price them at 3.50 per cent from the initial price guidance of 3.75 per cent,

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Acquisition by e-Shang Redwood Subsidiary of 80 Percent Indirect Interest in the Manager

Cambridge Industrial Trust Management Limited, as the Manager of Cambridge Industrial Trust, has been informed that nabInvest Capital Partners Pty Limited (a wholly-owned subsidiary of National Australia Bank Limited) and CREIM Limited (a wholly-owned subsidiary of Oxley Global Limited) have entered into a binding agreement today for the sale of their aggregate 80% indirect interest in the Manager to e-Shang Infinity Cayman Limited, a subsidiary of e-Shang Redwood Limited. The Transaction also includes Infinity acquiring a 100% indirect interest in Cambridge Industrial Property Management Pte. Ltd., the property manager of CIT. Completion of the Transaction is expected to take place within this week

ESR was formed as a result of a merger between e-Shang and the Redwood Group in 2016. eShang, founded in 2011 by global private equity firm Warburg Pincus and two successful Chinese real estate entrepreneurs – Mr. Jeffrey Shen and Mr. Sun Dongping, develops institutional-quality warehouses in China and South Korea and has grown rapidly to be one of the largest third-party landlords for the leading e-commerce companies, cold-chain logistics and modern warehouse operators. The Redwood Group, founded in 2006 by Mr Stuart Gibson and Mr Charles de Portes, is a specialized logistics real estate firm and funds management business with operations in China and Japan. Since the merger, ESR has emerged to become the second largest developer in North Asia with more than US$5 billion of assets under management across China, Korea and Japan. 

More details in http://infopub.sgx.com/FileOpen/CIT%20Ex...eID=436092

[weijian]

Cambridge Industrial Trust to change name to ESR-REIT
WED, JUN 21, 2017 - 8:11 AM

CAMBRIDGE Industrial Trust Management Limited and Cambridge Industrial Trust will change their names to ESR Funds Management (S) Limited and ESR-REIT respectively from Friday .

Announcing this on Wednesday, the trust management said the Reit's short trading name on the Singapore Exchange (SGX) will be ESR-REIT with effect from 9am on Friday.

Its chief executive officer and executive director Adrian Chui said the name change signifies the importance of the Reit as part of the e-Shang Redwood Group's business activities and its continued support.

http://www.businesstimes.com.sg/companie...o-esr-reit