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Cannot be la....different sector.
If by listed company, Fraser or Mapletree.
If not.......GLP? (taken private few years back).
If by listed company, Fraser or Mapletree.
If not.......GLP? (taken private few years back).
Goldblade ( Date: 10-Oct-2021 16:48) Posted:
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Lobster ( Date: 08-Oct-2021 21:48) Posted:
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Suntec?
Lobster ( Date: 08-Oct-2021 21:48) Posted:
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I got news for you. But let me stress, it' s no insiders news. It' s some speculation coffee shop talks. So if it really happens, it' s just coincidence. Agree?
heardvthat AIMS will be subject of interests of another company, BUT BUT BUT, unlike what' s widely rumoured for months, it may not be ESR--- but another tok kong company. Not difficult to guess which one it is.
vested. Pdyohwadfmb
heardvthat AIMS will be subject of interests of another company, BUT BUT BUT, unlike what' s widely rumoured for months, it may not be ESR--- but another tok kong company. Not difficult to guess which one it is.
vested. Pdyohwadfmb
With 2 value acquisitions, and needs for industrial warehouse in sg....aims is poise to hit 1.70.....
selling pressure ending...more vol of buyers buying up ask price...
good fundamentals but got sold down due to an investor exiting.. waiting for this to finish...
AA Reit remains an attractive industrial, logistics play, RHB says
RECENT concerns over Aims Apac Reit' s (AA Reit) management changes, major shareholder sell-downs and acquisition delays or pricing are likely to be " transient in nature" , said RHB in a report on Wednesday.
Although these concerns have led to an 11 per cent drop in the real estate investment trust' s (Reit) unit price the past month, they do not alter the Reit' s strong business fundamentals, the research team noted.
It added that AA Reit remains an attractive play on the industrial and logistics sector as it is trading at one times its book value and was recently included in the FTSE EPRA Nareit Global Index.
RHB has raised its target price to S$1.72 from S$1.70 and maintained its " buy" call on AA Reit. This implies an upside of 21.1 per cent from the counter' s trading price of S$1.42 as at 11.13am on Wednesday. AA Reit' s units were up 0.7 per cent or S$0.01 at the time.
The research team has lowered its estimates for FY2022 distribution per unit (DPU) by 2 per cent, but raised its FY2023-2024 DPU estimate by 1 per cent.
On Sept 30, AA Reit' s manager announced that the Reit is acquiring the headquarters of Australia' s Woolworths in Sydney, Australia, for A$463.3 million (S$454 million).
The move will make the supermarket and grocery chain AA Reit' s largest tenant by gross rental income contribution. Post-acquisition, AA Reit' s assets under management will jump 26.6 per cent to S$2.18 billion, with the Australian properties accounting for 38.4 per cent of its portfolio by valuation, up from 21.8 per cent currently.
When it comes to the Woolworths deal, RHB believes the asset' s long weighted average lease to expiry of 10 years mitigates market concerns on aggressive pricing and slightly lower initial net property income yield.
Moreover, there is strong redevelopment potential, as well as leases that come with built-in rental escalations of 2.75 per cent per annum, with up to 20 years of extension options, RHB added.
I will almost certainly vote against the acquisition. Given market cap around 1bio, assuming 15% premium based off VWAP at 1.64 acquisition price, funded by consideration shares and some cash, thats at least 50% funded by cash and ESR-reit shares, and shareholders get bought out. with the combined credit rating, they can then issue more debt securities to fund the purchase consideration of AIM' s recent acquisitions.
pkli899 ( Date: 06-Oct-2021 19:51) Posted:
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Of course the more the merrier.
However, knowing ESR, I would rather they don' t touch Aims Apac.
Incidentally, Aims just announced results release date - 13 Oct.
It is extremely early - unprecedented.
Probably there will be additional announcement to be made.
However, knowing ESR, I would rather they don' t touch Aims Apac.
Incidentally, Aims just announced results release date - 13 Oct.
It is extremely early - unprecedented.
Probably there will be additional announcement to be made.
Lcsx83 ( Date: 05-Oct-2021 22:13) Posted:
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I think you probably will want sgd1.70 minimum. ESR will most likely do a share swap as they are short of cash (highly geared).
If you average ESR's profits over the last 5 years they are actually making large losses.
Must be above 1.60 for me.
Incidentally 1.60 was the recent high.
Incidentally 1.60 was the recent high.
davidgoh123 ( Date: 03-Oct-2021 23:02) Posted:
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If ESR reit attempts to acquire AIMS Apac via the same method it has tried to acquire the other reits in the past, what would be the minimum price that AIMS shareholders would accept? clearly it would be a premium, but the question is how much of a premium.
Investment merits shine through for AA Reit in ' transformational' acquisition of Woolworths HQ
THINGS are about to change for industrial property landlord Aims Apac Reit (AA Reit) AIMS APAC Reit: O5RU -1.39%, following what chairman of the manager George Wang described as " transformational acquisition" for the Singapore-listed real estate investment trust (S-Reit).
Weeks after rumours first surfaced that it was on the verge of sealing a deal, AA Reit after market close on Sept 30 announced that it is acquiring the headquarters of Australian supermarket and grocery chain Woolworths in Sydney, Australia, for an eye-smarting purchase consideration of A$463.3 million (S$454 million).
" We see the acquisition as transformative for AA Reit. It is quite a significant transaction in both the scale and the quality of the asset, as well as the tenancy profile," said Russell Ng, CEO-designate of the manager, at a media briefing on Friday morning.
The freehold business park, which sits on a total land area spanning 90,010 square metres (sq m) with a total net lettable area (NLA) of 44,972 sq m, will be the largest asset in AA Reit' s portfolio, which currently consists of 26 properties in Singapore and two in Australia.
Post-acquisition, AA Reit' s assets under management will jump 26.6 per cent to S$2.18 billion, with the Australian properties accounting for 38.4 per cent of its portfolio by valuation, up from 21.8 per cent currently.
Meanwhile, Woolworths will become AA Reit' s largest tenant by gross rental income contribution.
The way Mr Ng sees it, the acquisition replicates AA Reit' s investment strategy when it made its maiden overseas acquisition of a 49 per cent stake in Optus' headquarters at Macquarie Park in Sydney back in 2014.
" At the time, that property value was about A$377 million. Today, it is over A$660 million," he said. " That was a really good result for us, and we hope this (Woolworths) asset provides us with the same investment metrics going forward."
The Reit manager is not alone in feeling bullish over the acquisition. Following the announcement, DBS has upgraded its recommendation on AA Reit to " buy" , from " hold" previously, with an unchanged target price of S$1.60.
" We continue to like AA Reit for its growth trajectory and this acquisition demonstrates its ability to compete for quality income-producing assets by staving off competition from the likes of Centuria, Charter Hall and Growthpoint," said analysts Dale Lai and Derek Tan in a report on Friday.
" With the stock' s recent inclusion into the FTSE EPRA Nareit Developed Asia Index, we believe the improved trading liquidity of AA Reit and potential lowering in cost of equity would enable it to embark on further accretive acquisitions despite the stiff competition for good quality income-producing assets," they added.
Meanwhile, Mr Ng, who will officially assume the role of CEO of the manager on Nov 29 after obtaining regulatory approval, brushed aside concerns on the cost of the proposed acquisition.
The deal will be a windfall for South Korea' s Inmark Asset Management, which paid just A$336.5 million for the property five years ago. Including other transaction costs, the acquisition is estimated to set AA Reit back by a total of A$494.3 million.
The purchase consideration for the property is in line with an independent valuation conducted by Knight Frank NSW Valuations and Advisory, which valued the property at A$463.3 million as at Sept 30.
" With the whole Covid situation, there has been a lot of focus by investors on long WALE (weighted average lease expiry ), secured income assets," Mr Ng added. " Ultimately, when we see what the market has paid, it is in line, because even though the price has increased and the yield has compressed, the actual borrowing costs have also dropped materially."
" Five years ago, it was a very different point in the real estate cycle. Interest rates in Australia were close to about 3 or 4 per cent. Today, the base rate is just 0.2 or 0.25 per cent" he added. " We think the acquisition compares favourably now when compared to other long WALE transactions that have happened in the market."
Mr Ng noted that the property will be acquired at an initial net property income (NPI) yield of 5.17 per cent based on the purchase consideration, or at an NPI yield of 4.84 per cent on a total costs basis.
The DBS analysts, however, point out that the NPI yield seems tight, compared to yields of close to 5.5-6 per cent for Ascendas Reit' s and Keppel Reit' s business park acquisitions in Macquarie Park.
" However, we note that cap rates have compressed since then, and a slight premium on Woolworths HQ is justified given the long lease to one of Australia' s largest and most reputable company," they said.
The proposed acquisition is also expected to be accretive to distribution per unit (DPU). With the planned funding in place, the Reit manager said the transaction will increase DPU to 9.37 Singapore cents, up 0.42 cents or 4.7 per cent from the FY2021 DPU of 8.95 cents.
Built in 2005, the Woolworths headquarters property is a corporate campus comprising three interconnecting buildings, which house A-grade office accommodation, a data centre operation, and amenities.
The property is fully leased to Woolworths, with 10 years left on the lease term, subject to built-in rental escalation of 2.75 per cent per annum.
" I think you have to look at where the market is," said Mr Ng. " Investors are looking for secured income. We like the asset not just not just because it has that secured income, but it also has that longer-term redevelopment potential."
Based on the maximum allowable gross floor area, the Reit manager said the current NLA provides for significant development potential to around 180,000 sq m.
The DBS analysts also pointed to the potential for further organic growth in AA Reit' s portfolio as a positive point. " In addition to the potential to tap on unutilised gross floor area (GFA) of more than 500,000 square feet (sq ft) within its Singapore portfolio, Woolworths HQ presents the opportunity leverage on a further close to 1.5 million sq ft of unutilised GFA," they said.
However, Mr Ng said there were no plans for any redevelopment at the moment, and added that any redevelopment plans would need to be worked in partnership with Woolworths.
The manager has secured a local debt-financing package for 60 per cent of the purchase consideration, while the remainder is expected to be funded through net proceeds raised from AA Reit' s recent issuance of S$250 million in perpetual securities.
Already, analysts are looking forward to AA Reit' s next accretive acquisition.
" We have rolled forward our valuation for AA Reit, while assuming a S$100 million equity fund raising by end of FY2022, and the completion of the acquisition of 315 Alexandra Road in Q4 FY2022. Based on our new projections, AA Reit' s DPU is expected to grow by close to 9 per cent in FY2023," said DBS' s Mr Lai and Mr Tan.
They added: " Although we also note that AA Reit' s balance sheet may seem stretched because of its heavy reliance on perpetual securities, our estimates show that the Woolworths HQ acquisition is DPU accretive even if there was an equity fund raising exercise."
Haha.....I got it from their press release.
U probably missed it.
I missed it also, until I read AK' s blog.
U probably missed it.
I missed it also, until I read AK' s blog.
Lobster ( Date: 01-Oct-2021 19:02) Posted:
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" May" is such a big word... anyway, in their press release, they didn' t say may raise new equity, stating that they have sufficient funds to finance the deal. Aims is not known to be a rights guy.
and btw, since nobody post this yet, I just post this news piece here. Quite a mouthful, so I post the link only .
and btw, since nobody post this yet, I just post this news piece here. Quite a mouthful, so I post the link only .
Investment merits shine through for AA Reit in ' transformational' acquisition of Woolworths HQ
https://www.businesstimes.com.sg/companies-markets/investment-merits-shine-through-for-aa-reit-in-transformational-acquisition-of
Either way, their target price remains the same.
Haha, DBS now upgrade Aims to " buy" with TP $1.60.
Only recently they downgraded it because of delay in completion of purchase of 315 Alexandra Road.
Only recently they downgraded it because of delay in completion of purchase of 315 Alexandra Road.
I quote below from the announcement:
" The Manager may also consider funding the Proposed Acquisition by a combination of debt financing, Acquisition Fee units, net proceeds raised from the issuance of the Perpetual Securities and new equity" .
The final decision on the method of funding will be made at appropriate time, taking into consideration of the prevailing market conditions.
New equity can be pte placement or rights issue.
" The Manager may also consider funding the Proposed Acquisition by a combination of debt financing, Acquisition Fee units, net proceeds raised from the issuance of the Perpetual Securities and new equity" .
The final decision on the method of funding will be made at appropriate time, taking into consideration of the prevailing market conditions.
New equity can be pte placement or rights issue.
Lobster ( Date: 01-Oct-2021 11:28) Posted:
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I am impressed with this acquisition, when all the Low lying fruits here are already chopped by the big leagues. This is actually a tok kong acquisition for a medium sized REIT! Most important it is DPU accretive......
* Transformational third acquisition in Australia Provides entry to a strategic business park and data centre location with strong road and rail transport connectivity
* A-Grade corporate campus that is 100% leased to Woolworths, one of the Top 10 ASX listed companies by market capitalisation, and the largest supermarket retailer in Australia
* Long lease term balance of 10 years and built-in rental escalation of 2.75% per annum
* Rare significant 9-hectare freehold site provides for future re-development potential to expand the current building footprint of 44,972 sqm to a maximum gross floor area
of 180,000 sqm
* Portfolio value will be significantly enlarged by 26.6% to over SS2.18 billion2
* Increases portfolio contribution of Australia freehold assets from 21.8% to 38.4%, and
raises portfolio WALE to 4.92 years
* Acquisition will provide an initial NPI yield of 5.17%3 and is DPU accretive
* Acquisition of Property aligns with AA REIT&rsquo s commitment to ESG
*The acquisition is subject to approval by the Foreign Investment Review Board of Australia