Frasers CentrePoint Trust
25-02-2014, 07:24 PM
(This post was last modified: 25-02-2014, 08:08 PM by AlphaQuant.)
(25-02-2014, 02:46 PM)swakoo Wrote: A fair price would be a good price - are you feeling they will not even get this? well as i've previously posted, i think a unitholder in a REIT with a sponsor as a parent should probably be happy if the injection is done at a fair price. FCT has a decent track record and I certainly hope the fair transactional relationship between FCT and FCL remains.
08-04-2014, 09:37 PM
http://infopub.sgx.com/FileOpen/FCT%20-%...eID=290526
Bought Changi City Point from FCL/Ascendas for $305m vs book value as reflected in FCL's maiden annual report of $199m. Impact on FCL yet to be revealed but should be soon. Win-win for both: i) FCL continued to be asset light; ii) FCT made a yield accretive acquisition Vested Both GG 
08-04-2014, 10:51 PM
FCT - Proposed Acquisition of Changi City Point (8 April 2014)
Implied cap rate ~5.1% Implied cost of equity ~6.1% Average cost of debt 2.73% Woodlands office site draws top bid of $634m This office site (bids just in today) will bring even more traffic to Causeway Point (major FCT asset) when completed, as it will be seamlessly connected to it. Who is the strongest of them all? This CIMB analysis of S-reits is very well done.
08-04-2014, 11:14 PM
(08-04-2014, 10:51 PM)swakoo Wrote: FCT - Proposed Acquisition of Changi City Point (8 April 2014) once the sale of changi city point goes thru..next to go might be the sale of Capri by Fraser serviced apartments(Part of the changi city point development) to the Frasers Hospitality Trust...
09-04-2014, 08:17 AM
PUBLISHED APRIL 09, 2014
FCT to acquire Changi City Point BYLEE U-WEN leeuwen@sph.com.sg PRINT |EMAIL THIS ARTICLE BT 20140409 UWFRASERS9AS3W 1036430 Changi City Point: The proposed acquisition will take the total number of suburban retail malls in FCT's portfolio to six MAINBOARD-LISTED Frasers Centrepoint Trust (FCT) has entered into a conditional sale-and-purchase agreement to acquire Changi City Point mall for a purchase consideration of $305 million. The announcement came yesterday from Frasers Centrepoint Asset Management (FCAM), the manager of the trust. The acquisition was negotiated on an arm's-length basis between FCAM, on behalf of the trustee of FCT, and the vendor, Ascendas Frasers. Ascendas Frasers is a 50-50 joint-venture between FCT's sponsor, Frasers Centrepoint Limited, and Ascendas Development. The purchase consideration of $305 million is based on two independent valuations by Knight Frank and Colliers International. The open market value of Changi City Point as at March 1 was determined by Knight Frank to be $306 million, and by Colliers to be $304 million. In a statement, FCT said that it planned to finance the purchase with a combination of equity and debt financing. This will ensure that the acquisition is distribution per unit (DPU)-accretive to FCT unitholders, while maintaining an optimum level of gearing. Equity financing may be in the form of a private placement of new FCT units, said the statement. Details of the financing structure will be set out in a circular to be sent out to all unitholders in due course. The proposed acquisition of Changi City Point - a three-storey retail mall in Changi Business Park, located opposite the Singapore Expo MRT station - will take the total number of suburban retail malls in FCT's portfolio to six. It will also increase FCT's total assets by about 14 per cent to $2.4 billion, said FCAM chief executive officer Chew Tuan Chiong. "This acquisition will strengthen FCT's ability to deliver regular and stable distributions to its unitholders, and unitholders can expect this acquisition to be DPU-accretive," he said. The mall, which began operations in November 2011, has a total net lettable area of just over 207,000 sq ft. It had a 97.8 per cent occupancy rate as at end-February, and a leasehold estate of 60 years from April 30, 2009. The mall is home to Very Special Arts Singapore, a charity providing opportunities for people with disabilities to access the visual, performing and literary arts for the purpose of rehabilitation and social integration.
09-04-2014, 11:57 AM
UOB KH, Frasers Centrepoint Trust (FCT SP)
Acquisition Of Changi City Point For S$305m FCT has announced the long-awaited acquisition of Changi City Point for S$305m to be funded with a mix of debt and equity financing. Acquisition will be ~1% accretive to FY15 DPU assuming 60/40 debt/equity funding. Expect further upside from initial acquisition yield of 5.0-5.5% as Changi City Point enters its first lease renewal cycle. Watch too for the acquisition of One@Changi City by AREIT. Maintain BUY on FCT with an unchanged target price of S$2.15 pending further funding details. WHAT'S NEW • Acquisition of Changi City Point for S$305m. Frasers Centrepoint Trust (FCT) has announced the proposed acquisition of Changi City Point (CCP) for S$305m (S$1,471psf). The vendor is a 50/50 JV between sponsor, Frasers Centrepoint Limited (FCL) and Ascendas. The purchase price is the average of two independent valuations by Knight Frank (S$306m) and Colliers (S$304m). • Changi City Point is a 207,237sf (NLA) suburban mall in the heart of Changi Business Park and is in close proximity to the residential estates of Simei, Bedok and Tampines. The property is located near the Singapore Expo, and is also beside the Expo MRT station. The mall had a 97.8% committed occupancy rate as at 28 Feb 14. • Initial acquisition yield of 5.0-5.5%, which is generally in line with the NPI yields for retail malls in FCT's portfolio (5.4-5.7%). The valuation of S$1,471psf is the second-lowest amongst FCT's mall portfolio, reflecting the low passing rent of S$9.08psf pm and also the 60-year leasehold title of the property. • To be financed with debt and equity, which will be raised via private placement, the exact mix of which has yet to be determined. As this is an interested party transaction, it will be subject to approval at an EGM and the acquisition is likely to be completed by mid-end 2Q14. • Portfolio asset size to increase 14% to S$2.4b while FCT's portfolio of suburban retail malls will increase to six malls from five currently. The mall, at 207,237sf, is relatively sizeable, equivalent to JCube (211,000 sf) and slightly smaller than Junction 8 (251,000 sf). • Yield-accretive transaction. Management has guided that the transaction will be accretive to the DPU of current unitholders even after factoring in equity fund raising through a private placement to partially finance the acquisition. Assuming a 60/40 debt/equity funding ratio, we expect a mild 1% accretion to DPU in FY15. A full sensitivity analysis is highlighted in the following page.
22-04-2014, 08:59 PM
22-04-2014, 10:23 PM
One nice point to take note is the following:
"Bedok Point, which is undergoing fitting-out works for several incoming new tenants, registered mall occupancy of 77.0%. Bedok Point’s occupancy is expected to recover to above 95% in the second half of year 2014 upon the lease commencement of the new tenants." While the contribution from Bedok Point is not really significant, it will certainly lift the unitholders' morale. Happen to note that they are not retaining any distribution this time round. Am I reading correctly?
23-04-2014, 08:43 AM
Pg 7 of the presentation slides.
Income available for Distribution: 46,520 Distribution to Unitholders: 44,432 5% retained? |
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