Tag Archives: REIT

Singapore Press plans to raise $540m in retail REIT IPO

Singapore Press Holdings, the newspaper publisher that owns the Paragon mall along the city’s shopping belt, said it plans to raise about $540 million from the initial share sale of a property trust.

The real estate investment trust is expected to list in early July, Chief Financial Officer Tony Mallek said in a briefing today. The REIT will buy Paragon and the Clementi Mall located in a western suburb for $3.07 billion, Singapore Press said in a statement today. It will pay a one-time dividend of 18 cents a share, the company said.

The trust “allows SPH to crystallize the value in Paragon and the Clementi Mall, and release capital to fund the group’s growth and the special dividend,” it said in the statement, adding that it will hold about 70% of the retail REIT after it goes public.

The IPO comes after Mapletree Greater China Commercial Trust raised $1.6 billion in February. REITs and business trusts have been the biggest fundraisers in Singapore’s IPO market in the past 12 months, accounting for almost 80% of the $6.6 billion raised in the city, the data show.

The REIT will have a market value of $2.2 billion, and will hold $900 million of debt, the company said in its presentation slides.

Paragon, located along Orchard Road, and Clementi Mall are “fully leased,” Singapore Press said earlier this year.

In the year through August 2012, property accounted for 26% of Singapore Press’s operating income of $466.9 million, while newspapers and magazines accounted for almost 71%, data compiled by Bloomberg show.

Singapore Press climbed 8.9% this year, compared with the 7.1% increase in the benchmark Straits Times Index. The stock added 0.5% to S$4.39 at the close in Singapore before the announcement.

Singapore Press also said in January that it will monitor its cost structure amid changing media consumption trends for a “sustained performance” of its main newspaper business.

Source – TheEdge : 27 May 2013

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Fortune REIT’s Q1 DPU up 15.7%

Fortune Real Estate Investment Trust (Fortune REIT) yesterday reported first-quarter distribution per unit (DPU) rose 15.7 per cent from the corresponding period in the previous year, broadly in line with the growth in its turnover, which was boosted by revenue streams from newly acquired properties.

Fortune REIT, which holds a portfolio of 16 retail properties in Hong Kong with a total area of about 2.5 million sq ft and nearly 2,000 car parking spaces, said DPU for the three months ended March 31 was 9 HK cents.

Total revenue for the period grew 16.3 per cent to HK$301.4 million (S$47.7 million), partly due to contributions from Belvedere Square and Provident Square that were acquired in February last year, Fortune REIT said. The increase in rents and the occupancy rate of its entire portfolio also added to revenue.

“Portfolio occupancy rate was 98.6 per cent as at March 31. Passing rent was HK$32.90 per sq ft while a 19.5 per cent rental reversion was achieved from renewed leases,” the trust manager said.

Net property income rose 17.6 per cent to HK$217.9 million and income available for distribution was up 16.3 per cent at HK$153.3 million.

Source : Today – 11 May 2013