Viva Industrial Trust

[lonewolf]

Information for this Viva Trust and its UE Biz Hub can be gleaned from the United Engineers Press Release - http://unitedengineers.listedcompany.com...4E7B.2.pdf - released a few months ago.

I wonder why UE dun take the REIT/Stapled Units themselves. They certainly have more assets that are reit-able and will probably make a better sponsor than Mr Tan Kim Seng.

[Nick]

Chinese Tycoon Tong Said to Purchase More Than Half of Viva IPO

By Joyce Koh & Pooja Thakur - Oct 14, 2013 4:58 PM GMT+0800

http://www.bloomberg.com/news/2013-10-14...cmpid=yhoo [Article]

[lonewolf]

The Preliminary Prospectus is OUT

First stapled securities with industrial/business parks assets. So will be an interesting case study.

[AlphaQuant]

Surprised that UE does not have more injectable assets other than UE AMK - after listing they retain just ard 6% of the equity of the Trust.

Think the biggest problem with this issue is the absence of a strong financial backer - UE is unlikely (prob unable as well with their B/S) to provide lender of last resort while the largest cornerstone investor Mr Tong will probably be looking to cash out of his Shanghai property as well thru the ROFR.

[ForeverAlone]

sorry may I know whats the yield and gearing for this reit?

[lonewolf]

Yield: Attractive distribution yield of 8.8% for Projection Year 2014 and 9.0% for Projection Year 2015 and 6.1% for Projection Year 2014 and 6.7% for Projection Year 2015 (excluding effects of the UE BizHub EAST Rental Arrangement, the TPCC Rental Support Arrangement and the Master Lease)

Gearing: As at the Listing Date, VI-REIT is expected to have borrowings of S$308.3 million with an Aggregate Leverage of 40.9%. The REIT Manager has obtained, in respect of VI-REIT, a preliminary credit rating of BB+ from Standard & Poor’s.

[ForeverAlone]

thanks a lot man, have a good day

[propertyinvestor]

REIT Base Fee
10.0% per annum of the Distributable Income of
VI-REIT (calculated before accounting for the REIT
Base Fee and the REIT Performance Fee).

[Aldar]

Yield: Attractive distribution yield of 8.8% for Projection Year 2014 and 9.0% for Projection Year 2015 and 6.1% for Projection Year 2014 and 6.7% for Projection Year 2015 (excluding effects of the UE BizHub EAST Rental Arrangement, the TPCC Rental Support Arrangement and the Master Lease)

Gearing: As at the Listing Date, VI-REIT is expected to have borrowings of S$308.3 million with an Aggregate Leverage of 40.9%. The REIT Manager has obtained, in respect of VI-REIT, a preliminary credit rating of BB+ from Standard & Poor’s.

So without the DPU support, it's actually 6.1% for Projection Year 2014 and 6.7% for Projection Year 2015...

[ForeverAlone]

10% of the dis income... hm... I think soilbuild reit is also like this right?

seems like reits shifting from % of nav to % of income.. is this good or bad?

I prefer % of income as manager will try to increase distributable income, and I get more dividends
if % of nav, we see managers like ARA, inflate the NAV of suntec reit and take in higher fees...

any views?