9 Oct 2020 Fri
UOBKH upgraded Suntec Reit to BUY with TP 1.72
halleluyah ( Date: 12-Oct-2020 09:00) Posted:
| KH upgrade to buy wth tp 1.72..... |
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the melb n sydney acquisition adding to the growth too....
halleluyah ( Date: 12-Oct-2020 08:51) Posted:
long some fr tis acquisition....future growth...
Joelton ( Date: 10-Oct-2020 12:24) Posted:
Suntec Reit eyes London foray with £ 430.6m acquisition of Nova buildings
SUNTEC Real Estate Investment Trust' s (Suntec Reit) manager is looking to acquire a half stake in London' s Nova development from Canada' s pension fund, based on an agreed property value of £ 430.6 million (S$766.5 million).
The development consists of two Grade A office blocks with ancillary retail - Nova North and Nova South - as well as The Nova Building, a primarily residential asset.
The Nova Building has retail units on the ground floor and 170 residential units. While the proposed acquisition includes the ground lease in relation to the residential units, the 170 residential units are excluded from the transaction.
This will be Suntec Reit' s first investment in the UK, its manager said in a bourse filing on Thursday night.
Suntec Reit will acquire from the Canada Pension Plan Investment Board (CPPIB) all the units in the two unit trusts that indirectly hold 50 per cent of the Nova properties. The Reit and CPPIB have inked a conditional sale and purchase agreement for the proposed deal.
The other half stake in the development will continue to be held by London-listed Land Securities Group (Landsec), the developer and asset manager of the Nova properties.
The estimated purchase consideration is £ 426 million, based on the current net asset value (NAV) of the two unit trusts. The final purchase price payable is subject to adjustments based on these trusts' NAV as at the date of completion.
Suntec Reit' s manager said the acquisition will likely be funded by British pound and Singapore dollar-denominated loans.
The deal is subject to unitholders' approval at an extraordinary general meeting expected to be convened in December 2020.
The net property income yield of 4.6 per cent will provide a 4.9 per cent accretion to distribution per unit upon the deal' s completion in December this year, said Chong Kee Hiong, chief executive of Suntec Reit' s manager.
In addition, the sellers will provide an income guarantee of up to £ 5 million - equivalent to two years of the retail income - to the buyers for two years after the completion date. This is in view of the disruptions caused by the Covid-19 outbreak to the operations and income of the retail tenants,
The agreed market value of £ 430.6 million, based on 50 per cent interest, is at a 1.2 per cent discount to the independent valuation of £ 436 million including the income guarantee.
The Nova estate is located in London' s prime West End business district, bounded by Victoria Street, Bressenden Place and Buckingham Palace Road and just opposite major railway station Victoria Station. Landmark attractions nearby include Buckingham Palace, Westminster Abbey and the Houses of Parliament.
Completed in 2016 and 2017, the Nova properties are the newest large-scale addition to the West End, said the Reit manager.
Each of the three buildings is held on a long leasehold tenure expiring on April 27, 3062, that is, with 1,042 years remaining. Their net lettable area totals some 559,000 square feet.
The office and retail spaces are fully occupied. The office tenants come from diverse sectors, with a weighted average lease expiry (WALE) of 10.6 years based on net lettable area as at June 30. Suntec Reit' s manager said the income stream from these office tenants makes up about 90 per cent of the Nova properties' total rental income.
Key office tenants include a government ministry, design and engineering consultancy Atkins, workspace provider The Argyll Club, energy and commodities trader Vitol and private investment firm BlueCrest.
Ancillary retail in the development includes food and beverage offerings and fitness amenities.
The two Grade A office buildings will " enhance the resilience, diversification and quality of Suntec Reit' s portfolio with income contribution from high-quality office tenants and a long WALE of 11.1 years" , Mr Chong added.
With the Nova acquisition, Suntec Reit' s assets under management will grow to S$11.5 billion across 10 properties in Singapore, Australia and the UK, from S$10.7 billion as at June 30.
The Reit manager has appointed ARA Dunedin Asset Management to provide ongoing local asset management and owners&rsquo representation services for the Nova investment. ARA Dundedin was created by Dunedin joining ARA Asset Management, which directly manages Suntec Reit, in 2019.
The proposed Nova deal comes after CPPIB' s planned sale of its stake was said to have hit a snag earlier this year as the coronavirus pandemic roiled global real estate markets. Bloomberg, citing people familiar with the matter, in March reported that ARA was no longer looking to complete the deal. It was among a string of large transactions that were being postponed or had collapsed at the time, Bloomberg wrote.
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It is a good long term investment to be funded by GBP and SGD loans. See section five of document below for proposed financial method and costs.
https://suntecreit.listedcompany.com/newsroom/20201008_224620_T82U_PKLU71E0A7P7Y8DN.1.pdf
Can refer to Company announcements via SGX.
Method of Financing: The Manager intends to finance the Total Acquisition Outlay with (i) the existing internal resources of Suntec REIT and (ii) external bank borrowings.
john_ric ( Date: 10-Oct-2020 16:01) Posted:
| will suntec resorts to right issues for the london acquisition? |
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long some fr tis acquisition....future growth...
Joelton ( Date: 10-Oct-2020 12:24) Posted:
Suntec Reit eyes London foray with £ 430.6m acquisition of Nova buildings
SUNTEC Real Estate Investment Trust' s (Suntec Reit) manager is looking to acquire a half stake in London' s Nova development from Canada' s pension fund, based on an agreed property value of £ 430.6 million (S$766.5 million).
The development consists of two Grade A office blocks with ancillary retail - Nova North and Nova South - as well as The Nova Building, a primarily residential asset.
The Nova Building has retail units on the ground floor and 170 residential units. While the proposed acquisition includes the ground lease in relation to the residential units, the 170 residential units are excluded from the transaction.
This will be Suntec Reit' s first investment in the UK, its manager said in a bourse filing on Thursday night.
Suntec Reit will acquire from the Canada Pension Plan Investment Board (CPPIB) all the units in the two unit trusts that indirectly hold 50 per cent of the Nova properties. The Reit and CPPIB have inked a conditional sale and purchase agreement for the proposed deal.
The other half stake in the development will continue to be held by London-listed Land Securities Group (Landsec), the developer and asset manager of the Nova properties.
The estimated purchase consideration is £ 426 million, based on the current net asset value (NAV) of the two unit trusts. The final purchase price payable is subject to adjustments based on these trusts' NAV as at the date of completion.
Suntec Reit' s manager said the acquisition will likely be funded by British pound and Singapore dollar-denominated loans.
The deal is subject to unitholders' approval at an extraordinary general meeting expected to be convened in December 2020.
The net property income yield of 4.6 per cent will provide a 4.9 per cent accretion to distribution per unit upon the deal' s completion in December this year, said Chong Kee Hiong, chief executive of Suntec Reit' s manager.
In addition, the sellers will provide an income guarantee of up to £ 5 million - equivalent to two years of the retail income - to the buyers for two years after the completion date. This is in view of the disruptions caused by the Covid-19 outbreak to the operations and income of the retail tenants,
The agreed market value of £ 430.6 million, based on 50 per cent interest, is at a 1.2 per cent discount to the independent valuation of £ 436 million including the income guarantee.
The Nova estate is located in London' s prime West End business district, bounded by Victoria Street, Bressenden Place and Buckingham Palace Road and just opposite major railway station Victoria Station. Landmark attractions nearby include Buckingham Palace, Westminster Abbey and the Houses of Parliament.
Completed in 2016 and 2017, the Nova properties are the newest large-scale addition to the West End, said the Reit manager.
Each of the three buildings is held on a long leasehold tenure expiring on April 27, 3062, that is, with 1,042 years remaining. Their net lettable area totals some 559,000 square feet.
The office and retail spaces are fully occupied. The office tenants come from diverse sectors, with a weighted average lease expiry (WALE) of 10.6 years based on net lettable area as at June 30. Suntec Reit' s manager said the income stream from these office tenants makes up about 90 per cent of the Nova properties' total rental income.
Key office tenants include a government ministry, design and engineering consultancy Atkins, workspace provider The Argyll Club, energy and commodities trader Vitol and private investment firm BlueCrest.
Ancillary retail in the development includes food and beverage offerings and fitness amenities.
The two Grade A office buildings will " enhance the resilience, diversification and quality of Suntec Reit' s portfolio with income contribution from high-quality office tenants and a long WALE of 11.1 years" , Mr Chong added.
With the Nova acquisition, Suntec Reit' s assets under management will grow to S$11.5 billion across 10 properties in Singapore, Australia and the UK, from S$10.7 billion as at June 30.
The Reit manager has appointed ARA Dunedin Asset Management to provide ongoing local asset management and owners&rsquo representation services for the Nova investment. ARA Dundedin was created by Dunedin joining ARA Asset Management, which directly manages Suntec Reit, in 2019.
The proposed Nova deal comes after CPPIB' s planned sale of its stake was said to have hit a snag earlier this year as the coronavirus pandemic roiled global real estate markets. Bloomberg, citing people familiar with the matter, in March reported that ARA was no longer looking to complete the deal. It was among a string of large transactions that were being postponed or had collapsed at the time, Bloomberg wrote.
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value add activities of support service to office tenants can bring additioinal income.
example food delivery, office stationary, cleaning service. robots.
these the chinese property management company are milking their residential tenants.
Wasn't it stated within the announcement that the acquisition is to be funded by current debt facilities?
Yep, especially IF they wish to do a rights issue. :/
drwealthz ( Date: 24-Sep-2020 08:44) Posted:
may be possible.. nevertheless, dont rush. otherwise you will be stuck at the high end. this one can buy on dips.
good company, but not a tech company
hokpin ( Date: 24-Sep-2020 08:27) Posted:
| Phase 3 is coming soon. Gov is charting out the details! |
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Suntec Reit eyes London foray with £ 430.6m acquisition of Nova buildings
SUNTEC Real Estate Investment Trust' s (Suntec Reit) manager is looking to acquire a half stake in London' s Nova development from Canada' s pension fund, based on an agreed property value of £ 430.6 million (S$766.5 million).
The development consists of two Grade A office blocks with ancillary retail - Nova North and Nova South - as well as The Nova Building, a primarily residential asset.
The Nova Building has retail units on the ground floor and 170 residential units. While the proposed acquisition includes the ground lease in relation to the residential units, the 170 residential units are excluded from the transaction.
This will be Suntec Reit' s first investment in the UK, its manager said in a bourse filing on Thursday night.
Suntec Reit will acquire from the Canada Pension Plan Investment Board (CPPIB) all the units in the two unit trusts that indirectly hold 50 per cent of the Nova properties. The Reit and CPPIB have inked a conditional sale and purchase agreement for the proposed deal.
The other half stake in the development will continue to be held by London-listed Land Securities Group (Landsec), the developer and asset manager of the Nova properties.
The estimated purchase consideration is £ 426 million, based on the current net asset value (NAV) of the two unit trusts. The final purchase price payable is subject to adjustments based on these trusts' NAV as at the date of completion.
Suntec Reit' s manager said the acquisition will likely be funded by British pound and Singapore dollar-denominated loans.
The deal is subject to unitholders' approval at an extraordinary general meeting expected to be convened in December 2020.
The net property income yield of 4.6 per cent will provide a 4.9 per cent accretion to distribution per unit upon the deal' s completion in December this year, said Chong Kee Hiong, chief executive of Suntec Reit' s manager.
In addition, the sellers will provide an income guarantee of up to £ 5 million - equivalent to two years of the retail income - to the buyers for two years after the completion date. This is in view of the disruptions caused by the Covid-19 outbreak to the operations and income of the retail tenants,
The agreed market value of £ 430.6 million, based on 50 per cent interest, is at a 1.2 per cent discount to the independent valuation of £ 436 million including the income guarantee.
The Nova estate is located in London' s prime West End business district, bounded by Victoria Street, Bressenden Place and Buckingham Palace Road and just opposite major railway station Victoria Station. Landmark attractions nearby include Buckingham Palace, Westminster Abbey and the Houses of Parliament.
Completed in 2016 and 2017, the Nova properties are the newest large-scale addition to the West End, said the Reit manager.
Each of the three buildings is held on a long leasehold tenure expiring on April 27, 3062, that is, with 1,042 years remaining. Their net lettable area totals some 559,000 square feet.
The office and retail spaces are fully occupied. The office tenants come from diverse sectors, with a weighted average lease expiry (WALE) of 10.6 years based on net lettable area as at June 30. Suntec Reit' s manager said the income stream from these office tenants makes up about 90 per cent of the Nova properties' total rental income.
Key office tenants include a government ministry, design and engineering consultancy Atkins, workspace provider The Argyll Club, energy and commodities trader Vitol and private investment firm BlueCrest.
Ancillary retail in the development includes food and beverage offerings and fitness amenities.
The two Grade A office buildings will " enhance the resilience, diversification and quality of Suntec Reit' s portfolio with income contribution from high-quality office tenants and a long WALE of 11.1 years" , Mr Chong added.
With the Nova acquisition, Suntec Reit' s assets under management will grow to S$11.5 billion across 10 properties in Singapore, Australia and the UK, from S$10.7 billion as at June 30.
The Reit manager has appointed ARA Dunedin Asset Management to provide ongoing local asset management and owners&rsquo representation services for the Nova investment. ARA Dundedin was created by Dunedin joining ARA Asset Management, which directly manages Suntec Reit, in 2019.
The proposed Nova deal comes after CPPIB' s planned sale of its stake was said to have hit a snag earlier this year as the coronavirus pandemic roiled global real estate markets. Bloomberg, citing people familiar with the matter, in March reported that ARA was no longer looking to complete the deal. It was among a string of large transactions that were being postponed or had collapsed at the time, Bloomberg wrote.
may be possible.. nevertheless, dont rush. otherwise you will be stuck at the high end. this one can buy on dips.
good company, but not a tech company
hokpin ( Date: 24-Sep-2020 08:27) Posted:
| Phase 3 is coming soon. Gov is charting out the details! |
|
Can go lower ... dont rush yet
john_ric ( Date: 21-Sep-2020 12:55) Posted:
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Like-minded friends, join our Telegram group, 5300+ members and counting
SG' s largest trading community on Telegram (SG stocks, US stocks, HK, CN, etc)
http://t.me/sgHuat
Suntec REIT sees SGD13.7 million in net funds inflow on convention rules change
BY RIDZWAN RAHMAT ON SEPTEMBER 17, 2020
Suntec REIT saw SGD13.7 million in net funds inflow from institutional investors for the trading week that began on 7 September.
The funds inflow propelled the REIT&rsquo s unit price by more than 7% during the week, sending it to a high of SGD1.48 by 10 September.
Institutional investors began buying up Suntec REIT units in the wake of news that the Singapore government would soon allow conventions and exhibitions to resume.
Hope they make it into the STI in the coming quarterly review. but looks like a 10% gap behind Keppel DC and Fraser Log.
Look Good.... many have recovered from pre-covid19 price. this one shld be on the way
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