Perennial Real Estate Holdings Limited (formerly: St. James Holdings Limited)

[money]

I'm not sure about the company, but somehow the short encounter with CEO Pua during one of the AGMs gave me good confidence in him.

mind elaborating?

[cyclone]

Perennial becomes largest investor of Chinatown Point Mall with post-acquisition interest of 45.15%

Perennial's acquisition of the 40% interest will be funded via external borrowings, raising it's stake in Chinatown Point Mall from 5.15% to 45.15%.

The consideration was derived based on an agreed property value of S$442.5 million, which translates to a purchase price of S$2,077 per square feet  net lettable area. Projected net property yield ("NPI") of ~5.2% for FY2016.

The other investors of Chinatown Point Mall include SPH (raising its interest from 7.35% to 27.35% post the acquisition), NTUC FairPrice Co-Operative and some other private investors

More details in http://infopub.sgx.com/FileOpen/Final%20...eID=430977

[Muck]

Perennial International Health & Medical Hub is supposed to turn operational in second half of this year. PREH thus has the first mover advantage in Chengdu. However, they will be facing stiff competition from Wanda, helmed by China's richest man, which has signed an agreement with the Chengdu Municipal Government to invest RMB 70 billion in a healthcare industry park in Chengdu.

https://www.wanda-group.com/2017/latest_0406/1627.html

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6.4.17

Wanda Group signed a strategic cooperation agreement on April 6, 2017 with Chengdu Municipal Government to invest RMB 70 billion in a healthcare industry park in Chengdu.

The park will consist of two zones - the Hospital Zone and the Healthcare Industry Zone. The Hospital Zone will host two international top-notch general hospitals and eight international first-rate specialized hospitals. The Healthcare Industry Zone will host 30 related companies. Chengdu Municipal Government and Wanda Group will jointly build the park into a world-class center of the healthcare industry.

[cyclone]

2150 / 1750 = 1.2286. They bought at roughly $1,750 per sq ft approximately 2 years ago.

Perennial-led Consortium Contemplates Enbloc Sale of AXA Tower at S$1.65 billion

Perennial Real Estate Holdings Limited and its consortium of investors (together, the "Perennial-led Consortium") are considering the enbloc sale of AXA Tower at no less than S$1.65 billion, equivalent to about S$2,150 per square feet (“sq ft”) based on its post-asset enhancement initiative (“AEI”) total strata area of about 767,3581 sq ft. Taking into account the AEI cost of S$140 million that is fully debt-funded which will be borne by the potential new owner, the post-AEI strata value would be about S$2,333 per sq ft. The consideration for enbloc sale follows the receipt of a number of enbloc sale enquiries for the development, as a result of the improved Singapore office market environment and strong interest in the commercial office segment.

More details in http://infopub.sgx.com/FileOpen/AXA%20To...eID=464844

[weijian]

PREH seeks to wind up Capitol entities because of a deadlock with its partner. This is one risk that any investor should consider for those assets where PREH does not hold a majority stake. This happened with 112 Katong and now Capitol.

http://www.businesstimes.com.sg/companie...th-pontiac

Looks like an end to the dispute?

On 3 January 2018, the Perennial Entities entered into a settlement agreement with Chesham Properties Pte. Ltd. (“Chesham”), Perennial (Singapore) Retail Management Pte. Ltd. and Patina Hotels & Resorts Pte. Ltd. (the “Settlement Agreement”). The Settlement Agreement provides for a mechanism by which either the Perennial Entities or Chesham will purchase all of the others’ shares in the Perennial Entities’ associated companies (the “Proposed Transaction”), Capitol Investment Holdings Pte. Ltd., Capitol Retail Management Pte. Ltd. and Capitol Hotel Management Pte. Ltd. (collectively, the “Capitol Entities”). The sale and purchase of shares is expected to be completed within 19 weeks of the date of the Settlement Agreement

http://infopub.sgx.com/FileOpen/Perennia...eID=484082

[cyclone]

Perennial Appoints Kempinski to Operate The Capitol Kempinski Hotel Singapore at Capitol Singapore

Perennial Real Estate Holdings Limited announced that it has appointed Kempinski Hotels S.A., Europe’s oldest luxury hotel group, to operate The Capitol Kempinski Hotel Singapore at Capitol Singapore, the first luxury heritage lifestyle integrated development in Singapore’s downtown Civic District.

Comprising three heritage buildings, Capitol Singapore houses the premier shopping and dining destination Capitol Piazza, the iconic Capitol Theatre, the luxurious Eden Residences Capitol and the upcoming The Capitol Kempinski Hotel Singapore, which will be Kempinski’s flagship hotel in Singapore.

The Capitol Kempinski Hotel Singapore will itself be positioned as a luxury lifestyle destination. It will comprise 157 guest rooms and suites, situated within the restored Capitol Building and Stamford House. The hotel will also feature a leading international restaurant under the helm of a Michelin-starred chef.

More details in http://infopub.sgx.com/FileOpen/Final%20...eID=506633

[cyclone]

Entry Into 60:40 Joint Venture to Develop A Residential Development in Sentul City, Bogor Regency, Indonesia

Perennial Real Estate Holdings Limited announced that it has, through its wholly-owned subsidiary incorporated in Singapore, Perennial SL Pte. Ltd. (“PSLPL”), acquired a 100% interest in Sanctuary City Pte. Ltd. ("SCPL") from an unrelated party.

SCPL in turn owns a 60% interest in PT Bhakti Bangun Harmoni, which is incorporated in Indonesia and wholly-owns a 246,982 square metres ("sqm") land parcel in Sentul City, Bogor Regency (Greater Jakarta), Indonesia (the "Site").

Following the Acquisition, Perennial has a 60% effective interest in the Site which will be jointly developed into a predominantly residential development, with an Indonesian company, PT Cipta Harmoni Lestari (“CHL”), holding the remaining 40% interest.

The Site is located in Sentul City in Bogor Regency about 50 kilometres south of Jakarta, the capital of Indonesia. It is easily accessible by highway from Jakarta. The Light Rail Transit that is currently under construction will further enhance connectivity between Jakarta and the Site once completed. The Sentul City station, located approximately 8 kilometres from the Site, is expected to begin operating in 2020.

PT Bhakti Bangun Harmoni intends to develop a high-quality residential development on the Site, encompassing a variety of residential properties, including landed houses and condominiums, with a total gross floor area of at least 147,000 sqm and over 1,700 residential units.

The consideration for the Acquisition of SCPL is USD15.6 million (approximately SGD21.0 million), and was arrived at on a willing-buyer willing-seller basis.

The total development cost for the Site is over IDR1.6 trillion (approximately SGD153.4 million) and is expected to be funded through residential sales, external borrowings and internal funds.

More details in http://infopub.sgx.com/FileOpen/Perennia...eID=508166

[AQ.]

2y paper issued @ 5.95% - in Jan18 they managed to issue 3y @ 3.9%. This is quite a large spike in borrowing costs.

There are 2 retail tranches - one maturing 2018 while the one maturing 2020 is still trading >par. Both issued couple yrs ago @ 4.55-4.65%

As of Jun18, gearing of Perennial is "just" ~80% with 1bio of debt <1y and 2bio beyond.

Overgeared developers better watch their balance sheets cos its not getting pretty.

[money]

2y paper issued @ 5.95% - in Jan18 they managed to issue 3y @ 3.9%. This is quite a large spike in borrowing costs.

There are 2 retail tranches - one maturing 2018 while the one maturing 2020 is still trading >par. Both issued couple yrs ago @ 4.55-4.65%

As of Jun18, gearing of Perennial is "just" ~80% with 1bio of debt <1y and 2bio beyond.

Overgeared developers better watch their balance sheets cos its not getting pretty.

Hi AQ, do you know what is the size for this recent 2 year paper? Thanks

[wonghw12]

2y paper issued @ 5.95% - in Jan18 they managed to issue 3y @ 3.9%. This is quite a large spike in borrowing costs.

There are 2 retail tranches - one maturing 2018 while the one maturing 2020 is still trading >par. Both issued couple yrs ago @ 4.55-4.65%

As of Jun18, gearing of Perennial is "just" ~80% with 1bio of debt <1y and 2bio beyond.

Overgeared developers better watch their balance sheets cos its not getting pretty.

Hi AQ, do you know what is the size for this recent 2 year paper? Thanks

The info can be found in the SGX:
http://infopub.sgx.com/FileOpen/Perennia...eID=522310