Keppel Infrastructure Trust (formerly known as Cityspring Trust)

[CY09]

In the water production and used water treatment plants and generator plants, there are numerous companies operating - Keppel, Hyflux, Sembcorp, St Engg. So one does not have to worry about Keppel Infrastructure. This is because there are other companies. In our strategic assets, we are not reliant on one govt-linked coy but on a multiple of them. So i don't find it an issue even if KIT goes into hostile foreign hands.

[Nick]

Personally, this deal is a win-win outcome for both Cityspring and KIT investors. The former now owns a trust with much lower leverage and greater distribution stream from local assets. The latter now has access to assets with longer lifespan (Citygas and Basslink) that mitigates the expiry of Senoko contract in 2025.

Are they planning to maintain a 100% cash payout ratio or are there plans to replenish their asset base by retaining some capital ?

(Not Vested)

[MINX]

Personally, this deal is a win-win outcome for both Cityspring and KIT investors. The former now owns a trust with much lower leverage and greater distribution stream from local assets. The latter now has access to assets with longer lifespan (Citygas and Basslink) that mitigates the expiry of Senoko contract in 2025.

Are they planning to maintain a 100% cash payout ratio or are there plans to replenish their asset base by retaining some capital ?

(Not Vested)

Base on it's latest share price, it's selling at 1.66P/B, is that grossly overvalued or am I missing something?

[Curiousparty]

Personally, this deal is a win-win outcome for both Cityspring and KIT investors. The former now owns a trust with much lower leverage and greater distribution stream from local assets. The latter now has access to assets with longer lifespan (Citygas and Basslink) that mitigates the expiry of Senoko contract in 2025. Are they planning to maintain a 100% cash payout ratio or are there plans to replenish their asset base by retaining some capital ? (Not Vested)

Each of the asset has its own trustee manager and there is an overall trustee manager for the combined trusts . Can the overall trustee manager override the control of the sub-trust manager ? How does it work in reality ?

Many tks .

[Nick]

Personally, this deal is a win-win outcome for both Cityspring and KIT investors. The former now owns a trust with much lower leverage and greater distribution stream from local assets. The latter now has access to assets with longer lifespan (Citygas and Basslink) that mitigates the expiry of Senoko contract in 2025. Are they planning to maintain a 100% cash payout ratio or are there plans to replenish their asset base by retaining some capital ? (Not Vested)

Each of the asset has its own trustee manager and there is an overall trustee manager for the combined trusts . Can the overall trustee manager override the control of the sub-trust manager ? How does it work in reality ?

Many tks .

Whoever said anything about a sub-trust manager ???

[HitandRun]

Personally, this deal is a win-win outcome for both Cityspring and KIT investors. The former now owns a trust with much lower leverage and greater distribution stream from local assets. The latter now has access to assets with longer lifespan (Citygas and Basslink) that mitigates the expiry of Senoko contract in 2025.

Are they planning to maintain a 100% cash payout ratio or are there plans to replenish their asset base by retaining some capital ?

(Not Vested)

Pardon my skepticism but will shareholders end up with an entity with the strength OR weakness of both parts? Nevertheless, perhaps shareholders might be comforted that the group CEO (i.e. Loh Chin Hua) is used to trading assets and might even be good at it? On the other hand, if the KIT is used like a step child (ala K-REIT), investors should be wary.....

[Curiousparty]

e.g. Singspring is the trustee of SingSpring Trust. KSND (Keppel Seghers NEWater Development) is the trustee of Ulu Pandan Trust and so on.

Does the KIFM (KI Fund Management, trustee manager of KIT) have overriding control over each of the constituent trustee ?

tks.

Personally, this deal is a win-win outcome for both Cityspring and KIT investors. The former now owns a trust with much lower leverage and greater distribution stream from local assets. The latter now has access to assets with longer lifespan (Citygas and Basslink) that mitigates the expiry of Senoko contract in 2025. Are they planning to maintain a 100% cash payout ratio or are there plans to replenish their asset base by retaining some capital ? (Not Vested)

Each of the asset has its own trustee manager and there is an overall trustee manager for the combined trusts . Can the overall trustee manager override the control of the sub-trust manager ? How does it work in reality ?

Many tks .

Whoever said anything about a sub-trust manager ???

[r0n]

e.g. Singspring is the trustee of SingSpring Trust. KSND (Keppel Seghers NEWater Development) is the trustee of Ulu Pandan Trust and so on.

Does the KIFM (KI Fund Management, trustee manager of KIT) have overriding control over each of the constituent trustee ?

tks.

Personally, this deal is a win-win outcome for both Cityspring and KIT investors. The former now owns a trust with much lower leverage and greater distribution stream from local assets. The latter now has access to assets with longer lifespan (Citygas and Basslink) that mitigates the expiry of Senoko contract in 2025. Are they planning to maintain a 100% cash payout ratio or are there plans to replenish their asset base by retaining some capital ? (Not Vested)

Each of the asset has its own trustee manager and there is an overall trustee manager for the combined trusts . Can the overall trustee manager override the control of the sub-trust manager ? How does it work in reality ?

Many tks .

Whoever said anything about a sub-trust manager ???

There are no sub-trust managers. The trustees only held the assets and undertake the business dealings on behalf of the trust, but they are not managers, unlike KIT's, which is known as Trustee-Manager. Hence, management is all at KIT level, and as they own a controlling stake of all the sub-trusts, there is no need to talk about overriding control since there is no management at that level.

[Curiousparty]

Take Singspring Desal plant as an example.

It is owned 30% by Hyflux and 70% by KIT (which is 17.6% held by KI, 15.3% held by Temasek and 67.1% by public).

The Trustee of the desal plant is Singspring while KIFM (KI Fund Management) is the trustee manager of KIT.

Are we saying that since KIT owns 70% of Singspring Trust, Singspring is in no position to "negotiate" with KIT?
e.g. KIFM can sack and replace the trustee or/and operator of the desal plant at their own discretion?

[touzi]

KIT's asset seems to have very short contract terms.

Merlimau until 2030 with 10y extension option
Basslink until 2031 with 15y option
DC One until 2036 with 8y option
The 4 water and waste plants until 2024/25/27/34

Does anyone knows what happens when the contract ends for such businesses?
What can KIT do with the asset?
In the event of an extension, will there be any payment involved? If so, who pays who ? Government (as the customer)pays KIT or the other way round since Government is issuing a license to operate?