Tag Archives: NTUC FairPrice

Mapletree Commercial Trust debuts on Singapore Exchange

Posted on 27 Apr 2011 | Comments Off on Mapletree Commercial Trust debuts on Singapore Exchange

This year’s second-largest initial public offering (IPO) has a flat showing on its first trading day on Wednesday.

Mapletree Commercial Trust opened a tad higher but soon gave up early gains to end at its IPO offer price of 88 cents.

The real estate investment trust (REIT) is the most actively traded counter in the Singapore Exchange during the session, with some 140 million units changing hands.

The counter rose briefly to 89 cents, and reached a high of 90 cents but the buying sentiment fizzled out causing the stock to end its first trading day at 88 cents.

The REIT had offered about 713 million units to institutional and retail investors during its IPO.

REIT manager Mapletree Commercial Trust Management said the total placement tranche and public offer was about 8.38 times subscribed.

The offering of 712.89 million units consist of a placement tranche of 548 million units for institutional investors, and a public offering of 164.8 million units.

Cornerstone investors, including the AIA Group, Hillsboro Capital, Itochu Corporation and NTUC FairPrice Cooperative, have subscribed to a total of 302 million units.

These are separate from the offer.

Distribution per unit for the first year of the Trust’s listing (2011/2012) is 4.97 Singapore cents, and 5.42 Singapore cents in the second year (projection year 2012/2013).

The REIT owns VivoCity and office buildings such as the Bank of America Merrill Lynch HarbourFront and PSA Building.

Part of the S$893 million in IPO proceeds will be used to pay for the acquisition costs of the two office buildings.

The proceeds will also be used to fund loans, issue and debt-related costs and working capital.

The IPO follows the mega US$5.4 billion offering by Hutchison Port Holdings Trust (HPH) last month, and the S$3.45 billion offering by Global Logistics Properties late October.

The performance of these two other mega IPOs have been dismal.

At press time, HPH closed trading at 7 per cent below its offer price $1.01 and Global Logistics Properties closed two cents below its IPO price of S$1.96.

Source : CNA – 27 Apr 2011

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SPH-led venture puts in top bid for Clementi mall1

Posted on 11 Nov 2009 | Comments Off on SPH-led venture puts in top bid for Clementi mall1

A joint venture involving Singapore Press Holdings (SPH) subsidiary Times Properties, NTUC FairPrice Co-Op and NTUC Income Insurance Co-op placed the top bid of $541.898 million for a mall being developed in Clementi Town Centre by the Housing & Development Board (HDB).

The top bid was 41.9 per cent above the next highest bid of $382 million, made by a joint venture involving Keppel Land’s fund management unit Alpha Investment Partners and Guthrie.

HDB is building only the core structure and facade of the mall, which it aims to hand over to the winning bidder in August next year. The new owner will then finish the project internally, with flexibility to plan the theme and layout.

Clementi Mall – the working name for the property – comprises two basement levels and five storeys above ground with a maximum net floor area of 18,000 square metres or 193,750 square feet of retail space.

An air-conditioned bus interchange will be on the first level and the third level will be connected to Clementi MRT Station.

The SPH-led consortium’s top bid works out to $2,797 per square foot (psf) based on the maximum allowable retail net floor area (NFA), says Stella Hoh, head of investments at Jones Lang LaSalle, which handled the tender exercise for the mall for HDB.

Including an estimated fitting-out cost of about $50 million, the unit price works out to $3,055 psf of retail NFA, she added.

Knight Frank managing director Danny Yeo, using a lower fit-out expenditure assumption of $40 million, says the top bid works out to about $3,003 psf of retail NFA.

‘To achieve a 5.5 per cent to 6 per cent net property yield that most investors would want today for such an asset, an average gross monthly rental of about $18 psf would be required. Right now the average rental at the best suburban malls is about $15-16 psf,’ he said.

‘If they get their tenant mix right, it would not be a problem to grow the mall’s rental level in a few years,’ he added.

When contacted, a spokesman for SPH said: ‘We intend to optimise the usage efficiency of the mall.’

He added that ‘the joint venture parties have evaluated the business case for the project and believe that it is a reasonable bid’, citing several factors, including the good catchment area.

Besides its location in Clementi Town, the property is in close proximity to the Holland, Bukit Timah and West Coast areas with key tertiary institutions such as the National University of Singapore, Ngee Ann Polytechnic, Singapore Polytechnic and UniSIM.

‘There are not many malls in the area. The property is in a high-traffic area due to integrated transport amenities and the business will provide solid and steady income stream to the JV parties,’ he added.

SPH is leading the joint venture with a 60 per cent stake, with FairPrice and Income taking 20 per cent each.

FairPrice will operate a supermarket and Income is also considering taking up some space in Clementi Mall, said SPH’s spokesman.

The other bidders at yesterday’s tender were Frasers Centrepoint Ltd ($352.1 million), the trustee of CapitaMall Trust, and Australia’s Lend Lease group.

Source : Business Times – 11 Nov 2009

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