Monthly Archives: September 2009

CapitaLand-linked units in asset swap

Posted on 30 Sep 2009 | Comments Off on CapitaLand-linked units in asset swap

CAPITALAND-linked entities have taken full ownership of 22 retail malls in China under an asset swap deal.

The asset swap arrangement is between two sponsored funds – CapitaRetail China Development Fund and CapitaRetail China Development Fund II – of the Singapore property giant and China’s SZITIC Commercial Property Co (SCP).

The two development funds, which already own 65 per cent of 16 retail projects, gained full control of them by taking over SCP’s 35 per cent stake. They also took over SCP’s 49 per cent interest in six other projects. Of these six projects, CapitaRetail China owns an existing 51 per cent stake in five of them and CapitaRetail China Trust (CRCT) holds an existing 51 per cent stake in the sixth.

In return, the two funds handed their 65 per cent stake in four retail projects and their half-interest in Shenzhen’s Xiangmihu Mall to SCP.

The arrangement also involved the development funds and SCP divesting their respective 65 per cent and 35 per cent equity stakes in six land parcels for which no substantial development work has commenced. The cooperative agreement with SCP will be terminated as the parties are moving in different strategic directions. Continue reading →

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Posted in Developers, Overseas Property

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S-Reit outlook still negative: Fitch

Posted on 30 Sep 2009 | Comments Off on S-Reit outlook still negative: Fitch

This despite better share prices and refinanced debt

SINGAPORE-listed real estate investment trusts (S-Reits) have mostly refinanced their maturing debt obligations this year and have benefited from a recent share price recovery, noted Fitch Ratings in a new special report. But questions still remain regarding their financial flexibility and refinancing ability, the ratings agency said.

Fitch is also maintaining its overall negative outlook for the sector, owing to negative asset performance expectations. However, the credit performance of the sector is expected to be driven by the industry sub-sector, hence individual S-Reits may have different outlooks.

The report noted that 12 out of 20 S-Reits, for which information was publicly available, reported a decline in the value of total assets as at end June 2009, from a year ago, largely on the back of falling asset prices and write-downs. Office S-Reits, in particular, reported a 4.2 per cent drop in total assets in the year ended June 2009, compared with an increase of about 54 per cent in the previous year, while retail S-Reits added 1.5 per cent to their total assets in the same period.

S-Reits, like property-related companies globally, have been buffeted by the global financial crisis, Fitch noted. Continue reading →

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Posted in Funds

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