Post Reply
321-340 of 562
No rights la....
They already said that the acquisition will be financed through debt financing and net proceeds from the recent issuance of perpetual securities.
They already said that the acquisition will be financed through debt financing and net proceeds from the recent issuance of perpetual securities.
They may issue new equities to fund the acquisition afterall.
However, rights issue or pte placement, not disclosed.
I would think there is not enough time to do rigths issue.
Normally the time frame for completion of purchase would not be too long.
The choice then is left with pte placement........and that is not what retail investors want!
However, rights issue or pte placement, not disclosed.
I would think there is not enough time to do rigths issue.
Normally the time frame for completion of purchase would not be too long.
The choice then is left with pte placement........and that is not what retail investors want!
Aims Apac Reit to acquire Woolsworth HQ in Sydney for A$463m
THE manager of Aims Apac Reit (AA Reit) AIMS APAC Reit: O5RU +0.7% on Thursday announced that it is acquiring the headquarters of Australian supermarket and grocery chain Woolworths for A$463.3 million (S$454 million).
Including transaction costs such as stamp duty, acquisition fee payable to the manager, the total acquisition cost will come up to A$494.3 million - considerably higher than the A$336.5 million that South Korea' s Inmark Asset Management paid for the property in 2016.
But the way chairman of the manager George Wang sees it, the asset, which will be the largest in AA Reit' s portfolio, will be a " transformational acquisition" for the Reit. " This proposed acquisition will strengthen AA Reit' s foothold in Sydney' s resilient business park market," he said.
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.
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.
It sits on a total site area of 90,010 square metres (sq m), with a total net lettable area (NLA) of 44,972 sq m. 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 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.
Post-acquisition, Woolworths will become the largest tenant in AA Reit' s portfolio. The proposed acquisition will significantly enlarge AA Reit' s portfolio value by over 26.6 per cent to S$2.18 billion.
It will also raise the contribution of the Reit' s Australian freehold properties from 21.8 per cent to 38.4 per cent.
The property will be acquired at an initial net property income (NPI) yield of 5.17 per cent, based on the property' s NPI of A$23.9 million in the first year of ownership over the purchase consideration of A$463.3 million.
Based on the estimated total acquisition costs of A$494.3 million, the initial NPI yield would be 4.84 per cent.
The Reit manager said the proposed acquisition is also expected to be distribution per unit (DPU) accretive.
The manager said it has " sufficient capacity" to complete the transaction, with net proceeds raised from the recent issuance of the S$250 million perpetual securities and a local debt-financing package secured for 60 per cent of the purchase consideration.
It added that it 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.
With the proposed acquisition, AA Reit' s aggregate leverage will increase to 38.6 per cent.
The manager said that at this aggregate leverage, the proposed funding structure utilising local debt financing and perpetual securities is expected to increase to 9.37 Singapore cents on a pro forma historical basis for FY2021. This is up 0.42 cents from the FY2021 DPU of 8.95 cents.
Upon settlement, the manager has elected to receive the acquisition fee in AA Reits units, it added.
https://investor.aimsapacreit.com/news.html/id/2354676
Acquisitions total SGD 483 mil....that is high...
Acquisitions total SGD 483 mil....that is high...
Finally, announcement made on acquisition of Woolworths HQ.
Good news for the reit.
Good news for the reit.
Aims current gearing is about 34.5% (max allowed is 50%).
There is considerable headroom for more borrowing.
However, we have to bear in mind the $105 m acquisition of Alexandra property is still not completed.
Couple with Woolworths HQ purchase which should be around another $450 m, the outlay is huge.
The $250 m obtained thru this perpetual securities covers less than half of the combined sum.
Loans still needed and the gearing then would probably crossed or at least near to the 40% mark.
I think time is a factor for not doing a rights issue instead.
It' s is also good for us that they didn' t do pte placement.
There is considerable headroom for more borrowing.
However, we have to bear in mind the $105 m acquisition of Alexandra property is still not completed.
Couple with Woolworths HQ purchase which should be around another $450 m, the outlay is huge.
The $250 m obtained thru this perpetual securities covers less than half of the combined sum.
Loans still needed and the gearing then would probably crossed or at least near to the 40% mark.
I think time is a factor for not doing a rights issue instead.
It' s is also good for us that they didn' t do pte placement.
pkli899 ( Date: 09-Sep-2021 15:21) Posted:
|
I just feel that at that interest level the deal doesnt seem to make much sense.
Is it just for the sake of growing ?
Is it just for the sake of growing ?
If I' m not wrong, fund obtained this way will not affect gearing.
This is to prepare for the big acquisition in Australia.
They need it together with loan to pay for the mega deal.
This is to prepare for the big acquisition in Australia.
They need it together with loan to pay for the mega deal.
Those are perpetual securities rather bond...for a reit which is USD 1bil, aims apac is issuing 250mil...which is quite significant...
Aims is a small reit compare to others large such as maple, capital etc..
Aims is rated BBB- by s&p....not triple AAA
https://www.reitasiapac.com/sp-reaffirms-bbb-rating-for-aims-apac-reit-with-stable-outlook/
Aims is a small reit compare to others large such as maple, capital etc..
Aims is rated BBB- by s&p....not triple AAA
https://www.reitasiapac.com/sp-reaffirms-bbb-rating-for-aims-apac-reit-with-stable-outlook/
Hi guys, does anybody have a clue why AIMS had to pay more than 5 percent coupon on their latest bond ?
Secondly if they couldnt find cheaper money what sense does it make to go for it as its so close to their DPU ?
I think shortly after the bond was confired the CEO / CFO left the company, does that have anything todo with that deal ?
Secondly if they couldnt find cheaper money what sense does it make to go for it as its so close to their DPU ?
I think shortly after the bond was confired the CEO / CFO left the company, does that have anything todo with that deal ?
https://www.businesstimes.com.sg/companies-markets/aa-reits-koh-wee-lih-to-join-keppel-reit-manager-as-ceo
Join keppel reit....
Maybe business as usual at aimsapac.
Join keppel reit....
Maybe business as usual at aimsapac.
Buy to compete with ESR?
They r the biggest shareholder now....uphill task for us (small investors).
001Zogel ( Date: 25-Sep-2021 10:35) Posted:
|
Just have to aggressively compete for lots in the open market before they initiate the takeover then...
pkli899 ( Date: 24-Sep-2021 13:57) Posted:
|
Yes, delay in completion of acquisition of Alexandra Road property is a concern.
Wonder what is holding up JTC in giving the approval?
It' s taking way too long. Will the acquisition be aborted?
Nevertheless, the following statement is really puzzling:
" DBS, however, is slightly less positive. Its analysts revised its DPU estimates down following the Reit' s last results release. " Our (DPU) estimates are revised down by close to 5.5 per cent mainly due to the delay in the completion of the 315 Alexandra Road acquisition,"
Why " less positive" ? Not as if the property already contributing revenue and got taken away, so DPU dropped.
Instead, with the up coming huge acquisition, should be very positive.
Actually, we are more worried when ESR will do hostile takeover.
Wonder what is holding up JTC in giving the approval?
It' s taking way too long. Will the acquisition be aborted?
Nevertheless, the following statement is really puzzling:
" DBS, however, is slightly less positive. Its analysts revised its DPU estimates down following the Reit' s last results release. " Our (DPU) estimates are revised down by close to 5.5 per cent mainly due to the delay in the completion of the 315 Alexandra Road acquisition,"
Why " less positive" ? Not as if the property already contributing revenue and got taken away, so DPU dropped.
Instead, with the up coming huge acquisition, should be very positive.
Actually, we are more worried when ESR will do hostile takeover.
AA Reit is one to watch on potential corporate action, say analysts
SEPTEMBER has been a busy month for Aims Apac Reit AIMS APAC Reit: O5RU +0.7%.
The Singapore-listed real estate investment trust (S-Reit), which owns and invests in a diversified portfolio of industrial real estate assets in Singapore and Australia, was one of the 11 S-Reits to be inducted into the FTSE EPRA Nareit Global Real Estate Index series this month.
On Sept 2, a day after the announcement, the counter rose 3.9 per cent or S$0.06 to a 52-week high of S$1.60. Traded value for the day surged to S$5.7 million, more than four times that of its 12-month total average daily traded value (ADTV).
Since then, however, several announcements have wobbled investor confidence. The counter has shed 10.6 per cent of its value in just three weeks, to close at S$1.43 on Thursday.
On Sept 8, Australian media reported that AA Reit' s sponsor is eyeing the national headquarters of Australian supermarket and grocery chain Woolworths. One media outlet described the sale transaction as " on the verge of being sealed" .
The rumoured price tag was over A$450 million (S$441 million) - considerably higher than the A$336.5 million that South Korea' s Inmark Asset Management paid in 2016.
Responding to those reports, AA Reit' s manager on Sept 9 said it is " in exclusive due diligence" on the property, but no decision had been made and no binding agreement entered into. " There is also no certainty that AA Reit would acquire the property," the manager said.
At the same time, AA Reit has recently raised some money. A week before the news of the potential Woolworths property deal, the Reit had announced the issue of S$250 million in perpetual securities paying 5.375 per cent per annum.
The net proceeds were to be used for general working capital, capital expenditure and investments of the Reit and its subsidiaries, as well as the partial or full refinancing of existing borrowings, the Reit' s manager said.
There have also been a few personnel movements in recent weeks.
Koh Wee Lih, executive director and chief executive officer of AA Reit' s manager, resigned on Sept 8 " to pursue other professional interests" .
Mr Koh had been responsible for the overall planning, management and operation of AA Reit for nearly eight years. His resignation takes effect Nov 28.
Two days later, on Sept 10, AA Reit announced that its head of finance and company secretary Stella Yeak Shuk Phin would be leaving to " pursue other interests" .
Subject to regulatory approval, Russell Ng Keh Yang has been appointed CEO-designate and will assume the role of CEO of the manager on Nov 29. Lim Joo Lee will join the manager as its chief financial officer and company secretary on Oct 23.
Mr Koh' s resignation has reignited speculation that AA Reit could be the target of an M& A deal with ESR-Reit.
ESR Cayman, the sponsor of ESR-Reit, had since last year been quietly building its holdings in AA Reit. It is currently the top unitholder in AA Reit, with a 13 per cent stake, up from just 5.24 per cent in November 2019.
ESR had also steadily increased its stakeholding in Sabana Shari' ah Compliant Real Estate Investment Trust (Sabana Reit) before the proposed merger between the two Reits was announced in July last year.
With the ESR-Sabana deal now off the table, after it was scuppered by disgruntled minority unitholders who opposed the merger on the grounds that it would be value-destructive, ESR-Reit may now turn its sights on AA Reit.
AA Reit' s management held a dialogue session with analysts on Sept 14, which BT understands as meant to give assurance that the resignations are unrelated.
Analysts have so far been optimistic on the counter. Bloomberg data shows four of the six research houses covering AA Reit have a " buy" or " outperform" call.
In a flash note on Sept 13, Macquarie Research said an acquisition of Woolworths' headquarters in Bella Vista could be about 2 per cent accretive to its distribution per unit (DPU) estimates for FY2022.
" Given management commentary that current gearing is comfortable, we think the perps could go towards funding this potential acquisition," said analysts Ong Hwee Yee and Derrick Heng. " We assume the remaining amount will be financed by debt taken out at the latest reported average interest cost of 2.8 per cent."
Macquarie has an " outperform" call on AA Reit, with a target price of S$1.70. " Successful acquisitions will provide further income growth," the research house said, adding that the Reit provides " an attractive 7 per cent yield" .
RHB, meanwhile, has named AA Reit as one of its top picks among the S-Reits, on the back of the earnings resilience of industrial Reits.
" Logistics, high-tech and business parks remain our preferred sub-segments, as these should be less impacted by Covid-19 while benefiting from the government' s longer-term push to transform Singapore into a smart nation," said analyst Vijay Natarajan.
RHB has a " buy" recommendation on AA Reit, with a target price of S$1.70.
" We see it as a laggard play on the logistics sector, with an attractive valuation of 1.1 times book value versus the peer average of 1.6 times book value," Mr Natarajan added.
DBS, however, is slightly less positive. Its analysts revised its DPU estimates down following the Reit' s last results release. " Our (DPU) estimates are revised down by close to 5.5 per cent mainly due to the delay in the completion of the 315 Alexandra Road acquisition," said DBS analysts Dale Lai and Derak Tan.
" We believe AA Reit continues to be on the lookout for its next acquisition but given the lack of visibility and the compressed cap rate environment, the Reit needs to be highly selective," the analysts said as they downgraded their recommendation to " hold" , from " buy" previously, with a target price of S$1.60.
DBS also said AA Reit' s next deal " may come in the form of a business park asset in Australia, similar to the type of asset on its books" .
For Q1 FY2022 ended June, AA Reit had announced DPU of 2.25 Singapore cents - up 12.5 per cent from DPU of 2 cents in the year-ago period.
Gross revenue rose 16.8 per cent to S$31.8 million for the quarter, while net property income grew 23.9 per cent on-year to S$23.1 million. The growth was mainly contributed by new leases at its recently acquired 7 Bulim Street property, and higher rental and recoveries from two of its other properties: 20 Gul Way, and 8 and 10 Pandan Crescent.
AA Reit is up 13.5 per cent this year, and is trading at 0.93 times its book value and an indicative gross dividend yield of 6.3 per cent.
ESR & AAR is no longer a IF, it' s now a matter of when...
Before close almost 20 mil at 1.40 change hand. It is huge to push downwards.
Something not very right going on.
Exceptionally high volume traded today. (almost 33.6 m units)
Price got push down from 1.45 to 1.40....what' s up?
Exceptionally high volume traded today. (almost 33.6 m units)
Price got push down from 1.45 to 1.40....what' s up?
Not a good news to me.
ESR bad reputation.
Don' t tell me is deliberate press down of price?
Motive is to give a low ball offer.
Within couple of days, 160 dropped 142/141.
ESR bad reputation.
Don' t tell me is deliberate press down of price?
Motive is to give a low ball offer.
Within couple of days, 160 dropped 142/141.
laksaman57 ( Date: 10-Sep-2021 20:52) Posted:
|
AIMS APAC REIT appoints former MNACT finance executive as CFO
The manager of AIMS APAC REIT (AA REIT) has announced that Lim Joo Lee will be appointed CFO and company secretary of the manager when she joins the company on Oct 23, subject to obtaining relevant regulatory approval.Prior to joining the manager, Lim has held senior finance manager roles with the manager of Mapletree North Asia Commercial Trust and KPMG in Singapore and the United Kingdom, where she has experience in capital management, financial accounting and reporting, as well as ensuring compliance with relevant legal and regulatory requirements.
She is a Chartered Accountant with the Institute of Singapore Chartered Accountants and is a Fellow Member of the Association of Chartered Certified Accountants.
AA REIT' s manager also announced that Stella Yeak has tendered her resignation and will relinquish her role as head, finance and company secretary effective on Oct 31 and Oct 23 respectively to pursue other interests.
As at 9.32am, units in AA REIT are trading up 1 cent or 0.69% higher at $1.46.