Tag Archives: Funds

REITs to boost property sector

Posted on 14 Jul 2012 | Comments Off on REITs to boost property sector

The property market is expected to see demand rise over the next 12 months from deep-pocketed institutional buyers such as real estate investment trusts (REITs), which are starting to see more value in the local marketplace, analysts say.

More REIT listings are also likely to spur acquisitions here. The proposed listing of Ascendas Hospitality Trust is set to be Singapore’s largest initial public offering this year, targeting between S$770 million and S$823 million. And experts say more of such REIT listings are to come.

With revenue per available room forecast to increase due to a supply shortage, hospitality REITs with Singapore assets will be attractive to investors.

“They will be successful as long as they can acquire several anchor Singapore properties,” said Mr John Stinson, Managing Director of Capital Markets, Asia-Pacific, Cushman & Wakefield.

“It’s a good time for REITs to be acquiring properties. In the next 12 months, the very successful, the larger REITs will grow in size. As they grow in size, they will rationalise their small properties.”

At its property prospects seminar yesterday, the Real Estate Developers’ Association of Singapore (REDAS) noted that the additional buyer’s stamp duty has brought about new trends in the non-residential property market.

Record transactions have been made for industrial property recently, while the retail property sector also performed strongly, it said.

Source : Today – 13 Jul 2012

Comments Off on REITs to boost property sector

Posted in Funds

Tagged , ,

K-REIT Asia to raise stake in Ocean Financial Centre

Posted on 26 Jun 2012 | Comments Off on K-REIT Asia to raise stake in Ocean Financial Centre

K-REIT Asia will acquire a 12.39 per cent interest in Ocean Financial Centre for S$228.4 million, raising its stake to 99.9 per cent.

In a filing with the Singapore Exchange, K-REIT Asia said the acquisition wil be funded by bank borrowings and the issue of 60 million new units at S$1.17 per unit. The issue price translates to a 15 per cent premium to K-REIT’s Monday closing price of S$1.02 per unit.

The proposed placement is expected to raise around S$70 million.

K-REIT, sponsored by Keppel Land Ltd., said it expects the acquisition to be immediately yield-accretive and raise its distribution to unit holders.

Ocean Financial Centre is a 43-storey premium Grade A office development located at the Raffles Place and Marina Bay precincts.

Ms Ng Hsueh Ling, CEO of K-REIT Asia Management, said: “Since our first acquisition of Ocean Financial Centre in December last year, we have raised the committed occupancy from 80 per cent to over 90 per cent as at end-March.

The enlarged interest will give us full management control of the property and higher tax transparent income, which will increase the DPU to K-REIT Asia’s unit holders.”

“With this acquisition, approximately 93 per cent of K-REIT Asia’s Singapore assets by value will be located in the prime Singapore central business district, strengthening K-REIT Asia’s position as the key premium office landlord in the Raffles Place and Marina Bay precincts.”

Source : CNA – 2012 Jun 25

Comments Off on K-REIT Asia to raise stake in Ocean Financial Centre

Posted in Funds

Tagged , , ,