Archive | A-Reit

World property Sun3Jan16 – Goodman boosts China fund, Evergrande & New World trade, A-Reit buys in Sydney again

Goodman’s Chinese fund gets equity boost
Evergrande buys from New World again
A-Reit adds to Australian portfolio

Goodman’s Chinese fund gets equity boost

ASX-listed Goodman Group & the Canada Pension Plan Investment Board said on 22 December they’d lift their equity allocation to the Goodman China Logistics Partnership by $US1.25 billion on an 80:20 basis, the Canadian fund committing $US1 billion and Goodman $US250 million, consistent with the partnership’s equity structure.

They established the partnership in 2009 to own & develop logistics assets in mainland China, focusing on locations where land constraints & demand were strongest. Their initial equity was $US300 million.

Separately, the partnership will acquire 9 projects (including land) from Goodman Group, with an end buildout value over $US650 million.

Evergrande buys from New World again

Heavily indebted Chinese developer Evergrande Real Estate said on Tuesday it was acquiring 7 mainland projects from Hong Kong’s New World Group for RMB20.4 billion ($US3.15 billion). In a separate transaction, Evergrande sold $US1.5 billion in perpetual securities to New World & affiliates.

A month ago, Evergrande acquired 4 mainland residential projects from New World, taking total acquisitions from the Hong Kong company to $US5.3 billion.

In a story this week linking 3 of China & Hong Kong’s biggest property names, Michael Cole of Mingtiandi wrote that New World chair Cheng Yu-tung took a $US506 million stake in Evergrande in 2008, a year before it listed in Hong Kong.

Link: Evergrande buys $US3.2 billion in projects from Hong Kong’s New World Group

A-Reit adds to Australian portfolio

A-Reit – the Singapore-listed Ascendas Real Estate Investment Trust – said on 24 December it would acquire a Sydney logistics facility from Deka Australia One GmbH for $A76.6 million. The facility at 6-20 Clunies Ross St, Pemulwuy, is in the Greystanes industrial precinct 30km west of the Sydney cbd and leased to Australia Post and the NSW Police on triple net leases, with a weighted average expiry of 6.1 years. Australia Post has subleased its space to retailer Target Australia Pty Ltd.

Ascendas management company chief executive Tan Ser Ping said the facility would generate a net property income yield of 7.1% before transaction costs in the first year, 6.6% post. It comprises a 36,220m² high clearance warehouse and a 2359m² 2-storey office & laboratory.

A-Reit entered the Australian market in September when it bought an $A1 billion portfolio of 26 logistics properties from Singapore sovereign fund GIC & Frasers Property Australia Pty Ltd.

Earlier story: World property Sun20Sep15 – A-reit enters Australia, Greenwich regeneration

Attribution: Goodman, Mingtiandi, A-Reit

Regular leads: Europe Real Estate, Mingtiandi, Planetizen

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World property Sun20Sep15 – A-reit enters Australia, Greenwich regeneration

A-reit enters Australian logistics market
$20 billion Greenwich regeneration approved

A-reit enters Australian logistics market

The Ascendas Real Estate Investment Trust of Singapore (A-Reit) has bought an $A1 billion Australian logistics property portfolio from Singapore sovereign fund GIC & Frasers Property Australia Pty Ltd.

Ascendas has formed the Ascendas REIT Australia trust to acquire the portfolio of 26 logistics properties, bought for $A1.013 billion, subject to post-completion adjustments. It will be held in the Ascendas Logistics Trust.

9 of the properties are in Sydney, 9 in Melbourne, 7 in Brisbane and one in Perth. Total gross floor area is 630,946m² on a total 121ha. Current occupancy is 94.4%, rising to 98.3% once 62 Stradbroke St in Brisbane is fully leased, average building age is 6.4 years, weighted average lease expiry 6.1 years (extending A-Reit’s average from 3.7 to 4 years), net property income $A64.5 million from 30 leases, 24 customers.

Leases include rental escalation of 3.3%/year on a portfolio basis, which is generally higher than similar leases in Singapore.

A-Reit’s manager announced its intention on 6 August to expand its investment mandate to explore opportunities in mature developed markets. This acquisition will increase the value of assets outside Singapore from 4% to 14%, on the way to a target of 20-30% outside Singapore. A-Reit has total assets of $S8.2 billion – 102 properties in Singapore, 2 business parks in China and now the Australian portfolio.

$20 billion Greenwich regeneration approved

Hong Kong developer Knight Dragon Developments Ltd was granted consent on 8 September for the addition of 13,000 homes to the 3000 it already has under construction on the Greenwich Peninsula, across the Thames from Canary Wharf in London.

Knight Dragon owns 67ha at Greenwich, most of it acquired in 2 transactions to take control of Greenwich Peninsula Regeneration Ltd from London developer Quintain Estates & Development plc and Lease Lease Corp Ltd of Australia for a project now estimated at costing £8.4 billion ($NZ20.4 billion). Knight Dragon separately owned 7.5ha of mixed-use land at Peninsula Quays.

The regeneration project Quintain & Lend Lease picked up in 2004 was to have had 10,000 homes, 38% in the affordable bracket and for key worker & special needs buyers. The affordable percentage has dropped to 25% but will remain about the same number, just under 4000. Other original components were 340,000m² of commercial & 33,000m² of retail space, plus developments in & around the Millennium Dome (renamed O2).

Other features now are the demolition & complete rebuild of the North Greenwich tube & bus station allowing for more bus capacity, a 40,000m² film studio, 60,000m² of business space, 24,000m² of retail & hospitality space, 1-2 hotels, 2 schools, a 20,000m² visitor attraction, a new ferry jetty terminal, a 5km running track around the whole site, a healthcare facility and expansion of Ravensbourne, a mostly privately funded college offering digital media & design courses and also host to over 100 creative technology businesses.

The UK Government’s national regeneration agency, English Partnerships, started the regeneration project in 1997, when it bought the 121ha site of a decommissioned gasworks and spent £225 million remediating & servicing, landscaping, enhancing the transport network and masterplanning the development.

Knight Dragon’s owner, Dr Henry Cheng Kar-Shun, & family have large property & infrastructure interests in Hong Kong & China, including the majority interest in New World Development Co Ltd.

Image at top: An artist’s impression of the Greenwich Peninsula development.

Links: Knight Dragon
Knight Dragon, Greenwich Peninsula
Royal Borough of Greenwich

Earlier stories:
13 November 2013: World property Wed13Nov13 – Sydney apartment upturn, Dexus wins, Canadians in London, New World chief takes Greenwich
21 June 2004: All contracts signed for £5 billion Greenwich regeneration

Attribution:

Regular leads: Europe Real Estate, Mingtiandi, Planetizen

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World property F7Aug15 – $A70 million home, A-reit looks at mature markets, big European trade

Chinese family’s new Sydney home costs $A70 million
Ascendas reit to expand into mature offshore markets
€1 billion portfolio deal in Europe as investment focus shifts

Chinese family’s new Sydney home costs $A70 million

Sydney media yesterday identified the buyer of James Packer’s 3345m² 6-level Vaucluse mansion La Mer as Chinese billionaire Chau Chak Wing. The price, $A70 million, set a new record for an Australian “house”, topping the $A53 million paid in 2013 for the Point Piper mansion Altona.

Dr Chau is a developer in Guangzhou, but the Australian Financial Review said he was a resident of Hong Kong and also a citizen of Australia. Forbes China Rich List last year ranked him at number 220 with a net worth of $US1 billion.

He has strong Australian interests – his wife & daughter Winky live in Sydney and he owns the Chinese-language Australian New Express Daily, which Winky Chau runs. She’s previously worked for 2 New South Wales premiers, Bob Carr & Morris Iemma.

Links: Australian Financial Review, story on Dr Chau
Daily Telegraph story

Ascendas reit to expand into mature offshore markets

The Ascendas Real Estate Investment Trust, listed in Singapore, said yesterday it was exploring investment opportunities in mature developed markets such as Australia & Germany.

The trust’s manager told unitholders expanding in this way would strengthen the portfolio.

Ascendas launched A-Reit in 2002 with a portfolio of 8 business & industrial properties worth $S636 million and has grown to a portfolio of 105 properties worth $S8.2 billion. It intends to grow its offshore investments to 20-30% of the portfolio.

Link: A-Reit

€1 billion portfolio deal in Europe as investment focus shifts

German asset manager Union Investment Group talked at the end of last year of moving most of the €2.5 billion/year it applies to real estate into international markets such as the UK, Japan, Australia, Singapore & the US, and helped that intent on Tuesday when it sold the Aqua package of 17 properties in 6 European countries to French company Amundi Immobilier SA for €1 billion.

Amundi is one of Europe’s largest asset managers, with €954 billion of assets under management, including €9.2 billion of real estate.

Union Investment specialises in open-ended real estate funds for private & institutional investors. It has €27.8 billion in 20 funds under management through Union Investment Real Estate GmbH & Union Investment Institutional Property GmbH.

In an explanation of its new, wider international focus, it said: “Union Investment is increasingly leveraging the opportunities that arise from different property cycles around the world. To spread risk and enhance performance, the company has a strict policy of investing in a mix of uses, regions & property sizes.”

Links: Union Investment
Amundi

Attribution: Australian Financial Review, Daily Telegraph, Ascendas, Union Investment

Regular leads: Europe Real Estate, Mingtiandi, Planetizen

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World property M26Jan15 – Stockland buys land, small A-reit gain, US shops in Europe

Stockland buys 3 big Melbourne & Brisbane tracts for commuter suburbs
Small rise in A-reit returns follows solid revenue gain
US funds lap up distressed euro property

Stockland buys 3 big Melbourne & Brisbane tracts for commuter suburbs

Stockland Property Group said a week ago it had bought 3 big tracts of land for masterplanned suburban development on the outskirts of Melbourne & Brisbane.

The sites are all residentially zoned. Prices weren’t disclosed.

The biggest, Cloverton, is an 1141ha site 35km north of Melbourne. 45km south-east of Melbourne it’s bought 65ha at Clyde North. The 143ha Brisbane site is 38km north of the cbd at Scarborough, on the shore of Moreton Bay.

Stockland said last week it was about to embark on its largest masterplanned residential community development in Victoria, Cloverton, creating about 11,000 homes.

The $A4.6 billion development will occupy 1141ha at Kalkallo, in a growth corridor 35km north of the Melbourne cbd. The project will feature a 60ha city centre with a regional shopping centre, a train station, 4 additional local town centres and a retirement village.

Stockland managing director & chief executive Mark Steinert said last week construction would start in a few months.

Stockland is planning to invest more than $1.3 billion on residential, retail & retirement living projects in Victoria over the next 10 years. Cloverton is a 30-year project, expected to house 30,000 people at a gross 10 dwellings/ha.

The group’s residential development manager for Victoria, Mike Davis, said new rail lines were proving to be the gamechanger for opening up new tracts of land to create viable, sustainable & highly liveable new communities.

Stockland has acquired 65ha of residentially zoned land at Clyde North, in the rapidly developing urban growth corridor of Casey City, 45km south-east of the Melbourne cbd.

Casey is one of Victoria’s fastest developing growth areas. Its population is set to rise from 250,000 in 2011 to 400,000 2031. The state metropolitan planning authority says its transport connection to central Melbourne & outlying areas include 2 electrified railway lines and 2 freeways, and it’s a one-hour rail commute from the cbd.

The site at 120-130 Tuckers Rd is included in the Clyde Creek precinct structure plan, which Victoria’s planning minister approved for residential development in November. Stockland will create an 800-home masterplanned community over 6 years, at a total development cost of $A128 million. Construction will begin in 2017, with the first settlements in the 2019 financial year.

Clyde North is a mixed-use precinct which will ultimately provide 7500 jobs & 13,900 new homes. Stockland said its site, 4km east of Cranbourne, offered residents convenient access to the existing Cranbourne train station, Berwick bus station & Princes freeway. It was also near 3 shopping centres, numerous childcare facilities & state primary schools & Monash University Berwick. The Casey Fields Regional Sporting Complex is 2km away.

In Queensland, Stockland has acquired 143ha of residentially zoned land in the northern Brisbane suburb of Scarborough for $A67 million, its first major land acquisition in Queensland in 5 years. The project, known as The Isles of Newport, has been trading for a number of years and is on the shore of Moreton Bay, 38km north of the Brisbane cbd.

Stockland’s development of new waterfront lots & bayside residential areas will have a total end value of $A590 million. It will comprise 1500 new homes, a 28ha non-tidal lake with a navigable loch providing high-mast boat access to Moreton Bay, a village centre and a number of foreshore parks.

The Isles of Newport is near the new Kippa Ring train station, due to open in 2016.

Links: Stockland
Clyde Creek approval

Small rise in A-reit returns follows solid revenue gain

A-reit (Singapore-listed Ascendas Real Estate Investment Trust) increased third-quarter gross revenue by 11.2% to $S171.7 million (2013 revenue restated), net property income by 5.6% to $S114.6 million, the total available for distribution by 1.6% to $S86.4 million, and the distribution/unit by 1.4% to S3.59c.

Link: A-reit presentation

US funds lap up distressed euro property

The Daily Reckoning noted last week that the $US is trading at an 11-year high against the euro, Financial Times property correspondent Kate Allen wrote that 79% of commercial transactions in Europe involved US private equity firms, and CBRE Capital Advisors said sales of European loan portfolios rose 133% last year to €49 billion.

Europe still has plenty of unwanted real estate debt to sell, but Ms Allen wrote that the discount on it had been cut from 63% in 2012 to 44% in 2014.

International alternative assets research firm Preqin said this month closed-end private real estate funds that focus on debt investments raised a record $US20 billion, up from $US16 billion in 2013; funds focusing on Europe raised 131% more capital in 2014 than in 2013, up from $US15 billion to $US36 billion; and 39% of capital raised internationally last year had a primary focus on Europe, up from 17% in 2013.

Links: Financial Times (behind wall), European banks step up sales of distressed property loans
AI-CIO, Europe destination of choice for real estate investors
Prequin, Private real estate fundraising maintains momentum in 2014, while debt funds raised record $US20 billion

Attribution: Company releases, Victorian Metropolitan Planning Authority, A-reit.

Regular leads: Europe Real Estate, Mingtiandi, Planetizen

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World property M27Oct14 – A-reit up, URS deal done, Ferrovial buys UK airports & chases Transfield, Stockland green bonds, Stockland-AMP deals, Unibail-Rodamco selldown, Bangkok super tower

A-reit lifts income 7%, completes Aperia
Aecom completes URS takeover
Ferrovial & Macquarie buy 3 UK airports, Ferrovial also chases Transfield
Stockland prices green bonds
Stockland & AMP do 2 Queensland mall deals
Unibail-Rodamco signs second big mall selldown
615m tower for Bangkok

A-reit lifts income 7%, completes Aperia

A-reit (the Ascendas Real Estate Investment Trust) lifted its net property income by 7% to $S114.7 million and its gross revenue by 8.6% to $S164.8 million in the September quarter.

The Singapore-listed trust has $S7.9 billion of assets, 32.6% geared. Its leases are weight 23% long-term, 77% short-term.

Its latest portfolio addition is Aperia, a new integrated mixed-use development in Kallang iPark (the dark towers in the foreground, above), completed for a total transaction value of $S458 million.

Aperia has a total gross floor area of 86,696m², consisting of 2 business-1 towers (72,290m² GFA) and 3 levels of retail & amenity space (14,406m² GFA) on the fringe of the Singapore cbd. The site has a 60-year lease from February 2012, but the $S218.3 million land price has been paid up front. The property was valued at $S488 million at 18 July.

Aperia was 27.7% occupied at 30 September, with another 21.9% committed & 15% under offer or negotiations.

Link: A-reit half-year results

Aecom completes URS takeover

Aecom Technology Corp has completed its $US4 billion takeover of URS Corp, plus $US2 billion for the assumption of debt. Holders of 35% of URS shares opted to take Aecom shares, 47% will take cash at $US54/URS share and the balance who didn’t make an election will be paid a mix of scrip & cash.

Aecom announced its takeover bid in July and expects to make $US250 million/year of savings from the integration. The combined group will have nearly 100,000 construction services & consultancy staff around the world. Their combined revenue for the June 2014 year was $US19.2 billion.

Link: Aecom

Ferrovial & Macquarie buy 3 UK airports, Ferrovial also chases Transfield

Glasgow Airport.

Glasgow Airport.

A 50:50 partnership between Spanish infrastructure operator Ferrovial SA and Macquarie European Infrastructure Fund 4 signed an agreement on 16 October to buy Aberdeen, Glasgow & Southampton Airports from Heathrow Airport Holdings Ltd for its enterprise value of £1.05 billion. Completion is expected by January.

On 20 October, Ferrovial submitted a non-binding proposal to buy Australian property operations & maintenance services company Transfield Services Ltd at $A1.95/share, a 39% premium to the share price over the previous week, 45% over the previous 6 months.

In September, Ferrovial and UK construction company Laing O’Rourke’s consortium won the £500 million contract to extend the London Underground’s Northern line, which includes digging 2 tunnels and building 2 new stations.

Links: Ferrovial release
MIRA (Macquarie Infrastructure & Real Assets)

Stockland prices green bonds

Stockland Corp Ltd said on Friday it had priced the first green bond issued by an Australian corporate – a €300 million 7-year issue under the company’s euro medium-term note programme.

The notes were priced at an € fixed rate coupon of 1.5%, which Stockland has swapped into $A at a total cost of BBSW (bank bill swap benchmark rate) +153 basis points. The notes will be listed on the Singapore Stock Exchange.

Stockland will use the proceeds to fund environmentally sustainable projects, including funding the development & redevelopment of green star-rated retail, commercial, residential & retirement living projects.

Link: Stockland

Stockland & AMP do 2 Queensland mall deals

Stockland Corp Ltd has bought a 50% interest in Sugarland Shoppingtown, Bundaberg, from an AMP Capital managed fund for $A59.25 million, at a 7.25% capitalisation rate. The acquisition includes management, leasing & development rights.

Stockland has also exchanged put & call contracts with a client of AMP Capital to buy its 50% stake in Sugarland on materially similar terms. Sugarland generated specialty sales of $A9566/m² as of July.

In a separate transaction, Stockland has sold its 50% of the Stockland Townsville Shopping Centre to the AMP Capital Shopping Centre Fund for $A228.7 million, in line with book value. Stockland completed a $A!80 million redevelopment of the centre last year. The centre had a 6.25% cap rate, while the separate Coles & Kmart component of the investment had a 7.25% cap rate.

Stockland is Australia’s largest diversified property group. We develop, own and manage retail centres, business parks, logistics centres, office buildings, residential communities and retirement living villages.

Link: Stockland

Unibail-Rodamco signs second big mall selldown

Unibail-Rodamco SE has continued its selldown of non-regional shopping centres, with an agreement on 16 October to sell 6 centres in France to Dutch company Wereldhave NV for €850 million, representing a net initial yield of 5.5% and an average value of €4200/m².

Unibail-Rodamco chief executive & management board chairman Christophe Cuvillier said of the disposal: “Unibail-Rodamco is pleased to have reached an agreement with Wereldhave, a party which, as a specialist in mid-sized shopping centres, will be able to manage these malls to their full potential. This transaction, part of the disposal programme of retail assets announced in February this year, will allow the group to continue to sharpen its focus on large regional shopping centres.”

The proposed Bangkok Super Tower.

The proposed Bangkok Super Tower.

Wereldhave intends to make a rights issue in December for up to €550 million for the bulk of its funding.

Unibail-Rodamco, listed in Paris & Amsterdam, decided in February to sell €1.5-2 billion of shopping centres over the next 5 years. In July, it sold 6 centres to Camila for €931 million.

Links: Unibail-Rodamco

615m tower for Bangkok

Thai property developer G Land (Grand Canal Land Public Co Ltd) launched its proposal on 17 October for the Super Tower above the Grand Rama 9 business district in Bangkok. It would be the tallest building in the ASEAN region and one of the world’s 10 tallest towers, at 615m & 125 floors.

It will have a 6000m² ground-level exhibition centre, a 6-star hotel in the tower and premium office space. G Land chairman Yotin Boondicharern wants it to the regional ASEAN headquarters.

Link: G Land

Attribution: A-reit, Aecom, Ferrovial, Unibail-Rodamco, G-land.

Regular leads: Europe Real Estate, Mingtiandi, Planetizen, World Property Channel

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World property M31Mar14 – Canadians buy into Chinese housing, GPT buys half a mall, CFS Retail internalisation done, Westfield advances to split, shift in debt currency, second 360 Capital listing

Canadian pension fund enters housing joint venture with China Vanke
GPT fund buys half of Melbourne shopping centre from Canadian fund
CFS Retail completes internalisation, Dexus takeover of office fund nears completion
Westfield organises funding for new group split
A-Reit shifts funds from euro to yen
Newly listed 360 Capital to list office fund separately

Canadian pension fund enters housing joint venture with China Vanke

The Canada Pension Plan Investment Board has formed a new venture with China’s largest residential developer, China Vanke Co Ltd, to invest $US250 million in the Chinese residential market over time.

The Canadian board’s senior vice-president of real estate investments, Graeme Eadie, said on Tuesday the venture would focus on new residential development projects in large cities where incomes are rising and economic fundamentals are strong.

“It is expected that these factors will provide significant demand for middle-income housing. To seed the venture, the board & Vanke are investing in a project in Qingdao, Shandong Province.”

China Vanke chairman Wang Shi.

China Vanke chairman Wang Shi.

Vanke was founded in 1984 by chairman Wang Shi, had revenue of $US22 billion in 2013 and has developments in 65 Chinese cities & 4 cities in other countries. It’s developed over 500,000 residential units and provides property management services to over 400 residential communities.

At 31 December 2013, the Canadian board had $C23.4 billion invested in Asia, representing 11.6% of its total portfolio, C$4.2 billion of the Asian investment is in real estate.

China Vanke entered the US property market in February 2013 when it signed a joint venture with Tishman Speyer LP, of New York, to develop 655 apartments in 2 joined towers in San Francisco.

Tishman Speyer has been a major commercial property developer in China. Its latest joint venture there, signed last September, is with Shanghai Lujiazui Group for 300,000m² of mixed-use development in the New Bund, south of the Shanghai Expo site in Pudong, featuring offices, upmarket retail & waterfront apartments.

China Vanke said on 4 March the China Securities Regulatory Commission had approved its request to transfer its listing of B shares in Shenzhen into H shares listed in Hong Kong. China Vanke will retain a listing for its A shares in Shenzhen.

Links:
Canada Pension Plan Investment Board
China Vanke
Tishman Speyer

GPT fund buys half of Melbourne shopping centre from Canadian fund

Australian property group GPT said on Thursday the GPT Wholesale Shopping Centre Fund had bought a 50% interest in the Northland Shopping Centre in Melbourne from the Canada Pension Plan Investment Board for $A496 million.

GPT chief executive & managing director Michael Cameron said the transaction represented an initial yield of 6.1% and a core capitalisation rate of 5.8%. It’s due to settle on Wednesday 30 April.

The super-regional centre 11km north of Melbourne’s cbd is co-owned & managed by CFS Retail Property Trust Group, which GPT unsuccessfully tried to take over (see next item). It has 91,536m² gross retail floor area, 3300m² office, 315 tenants, 4800 parking spaces, annual sales turnover of $A493 million

Link: GPT

CFS Retail completes internalisation, Dexus takeover of office fund nears completion

The Commonwealth Bank of Australia-controlled CFS Retail Property Trust completed its management internalisation last Monday, 24 March.

It was one of 3 property asset disposals the bank proposed last July. The first to be implemented was internalisation of Kiwi Income Property Trust’s management, which unitholders approved in December.

The second was the divestment of the $A3.9 billion Commonwealth Property Office Fund. The bank also proposed internalising this fund’s management last July, but Dexus Property Group swooped the next day, acquiring 14.9% of it by way of a forward contract, and thereby preventing anyone else from going to compulsory acquisition.

Another big ASX-listed property group, GPT, tried to buy the Commonwealth fund but gave up at the end of January. On 3 March, Dexus, partnered by the Canada Pension Plan Investment Board, said it had over 90%. Its takeover will be completed on Friday 4 April.

The retail property trust’s internalisation included acquiring the bank’s retail property asset management business and the relevant entities to begin the investment management of a number of wholesale property funds.

The new-look trust will manage $A13.9 billion of assets, and has 28 directly owned retail assets, 15 strategic partners & 5000 retailers.

Former Kiwi Income Property Trust chief executive Angus McNaughton, who’s been Colonial’s property managing director, has become chief executive & managing director of the internalised entity.

Mr McNaughton said the 28 retail assets would remain the revenue driver: “We will maintain our existing focus on the intensive asset management of our directly owned shopping centres. This includes the redevelopment & strategic remixing of our assets to create a compelling retail offer, driving shopper traffic & sales.

“Internalisation will allow further enhancements to our strategy. A strategic partnerships business will be added to the trust, making our offer complete through the addition of wholesale property funds & mandates, and retail property asset management.”

Link: Colonial First State Global Asset Management

Westfield organises funding for new group split

The Westfield Group advanced its newest restructure this week, saying on Wednesday it had entered into funding commitments for $A22 billion of financing facilities which are required for the proposal to establish Westfield Corp and Scentre Group.

Westfield announced the proposal to rearrange the group & the Westfield Retail Trust in December. Scentre Group will own the combined Australia & New Zealand business and will be internally managed. The rest of the business – malls in the US, UK, Europe & Brazil – will become Westfield Corp.

Subject to court approval, Westfield will dispatch the securityholder booklet, including the independent expert’s report, in late April. The meeting to consider the proposal will be held on Thursday 29 May.

This week’s announcement followed the completion last week of the $US800 million acquisition of the remaining 50% of Westfield World Trade Centre and the conditional agreement to sell 3 assets in the UK for $A1.1 billion.

The $A22 billion of funding commitments includes $A14 billion of 2-year bridge facilities, with an option to extend by a further 12 months, and $A8 billion of 2- to 6-year bank facilities.

The present group & trust manage $A70 billion of assets in 90 malls containing 20,500 retail outlets.

Link: Westfield corporate

Earlier story, 8 December 2013: Westfield restructure up for approval next May

A-Reit shifts funds from euro to yen

Ascendas Funds Management (S) Ltd, the manager of Singapore’s A-Reit (the Ascendas Real Estate Investment Trust, is moving $S395 million (€197.5 million) out of commercial mortgage-backed securities denominated in euros into floating rate yen notes.

A-Reit’s trustee has issued ¥5 billion of notes due in March 2021 to institutional & sophisticated investors. A swap agreement translates the proceeds into $S62.31 million.

Newly listed 360 Capital to list office fund separately

Australian syndicate manager 360 Capital Group Ltd continues to reshape the entities its investors are involved in, as it takes the 360 Capital Office Fund to an ASX listing 6 months after listing the parent group.

Former James Fielding Ltd executive Tony Pitt formed 360 Capital in 2006 to invest in direct property assets, property securities & various corporate real estate acquisitions on a private equity basis. The group expanded in 2010, when it bought the Becton residential & retirement village development group’s $A1 billion Becton Investment Management Ltd.

Last October, it obtained a backdoor listing on the ASX through the struggling Trafalgar Corporate Group. When it listed, 360 Capital Group managed 10 investment funds & trusts holding 28 industrial, office & retail assets valued at $A860 million on behalf of over 8500 investors. It also held $A91 million in co-investments in its managed funds and 2 direct assets valued at $A49 million.

360 Capital RE Ltd, the responsible entity for the 360 Capital Office Fund, said on Wednesday it had completed the institutional capital-raising component of the office fund’s fully underwritten $A155 million recapitalisation, restructure & listing proposal and trading in the new units was expected to open on Thursday 24 April.

It has an $A235 million portfolio of 4 assets, 99.6% leased, 36.5% gearing, distributions tax-deferred at about 65% and reflecting an 8.5% distribution yield on the $A2 issue price.

Link: Capital Group

Attribution: Canada Pension Plan board, China Vanke, Tishman Speyer, GPT, CFS, Dexus, Westfield, A-Reit, 360 Capital

Regular leads: Europe Real Estate, Mingtiandi, Planetizen, World Property Channel

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World property W22Jan14 – A-reit lifts property income by 3.7%

A-reit lifts property income by 3.7%

Singapore’s first listed real estate investment trust, A-reit, run by the Ascendas Group, lifted third-quarter net property income by 3.7% to $S108.6 million on gross revenue up 6.4% to $S154.4 million, but reduced the quarterly dividend by 2.2% to S3.54c/unit.

The portfolio showed positive rental reversion averaging 9.7% for leases renewed during the quarter. Its occupancy rate declined to 83.6% in multi-tenanted buildings (83.9% in the September quarter) and to 89.7% (90.1%) for the whole portfolio after net lettable area was increased by 1.7% through asset enhancement. The trust has maintained a leasing split of 30% long-term, 70% short-term (typically 3 years).

Aggregate gearing is expected to rise from 30.1% in December to 30.7% at year-end in March.

A-reit has a $S7.2 billion portfolio ranging through business & industrial uses. It has 103 properties in Singapore and 2 business parks in China.

Attribution: Ascendas.

Regular leads: Europe Real Estate, Mingtiandi, Planetizen, World Property Channel

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A-Reit $S350 million placement to buy 2 properties

A-Reit (the Ascendas Real Estate Investment Trust) announced a $S350 million-plus private placement of 140 million new units on Friday at $S2.50-2.55/new unit.

It intends to use $S126 million to buy a Singapore Science Park II property with access to Pasir Panjang Rd and the nearby Haw Par Villa MRT (mass rapid transit) station.

It will use another $S210 million as part of the funding to buy an integrated industrial mixed-use property (comprising business & white commercial space) at Kallang Avenue, near the Lavender MRT station on Singapore’s cbd fringe, 2 stops from the City Hall interchange. This $S490 million property is under construction.

The placement would reduce A-Reit’s gearing (the Singapore term used is aggregate leverage) from 32.8% at 31 December to 34.6%.

Attribution: Company release.

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A-Reit makes $S225 million revaluation gain, net income up 8.5%

Published 20 April 2012

A $S224.5 million net revaluation gain helped Singapore Government-controlled listed investor A-Reit (the Ascendas Real Estate Investment Trust, of Singapore) to a 12.4% increase in revenue to $S503 million for the March year.

Ascendas Funds Management (S) Ltd chief executive & executive director Tan Ser Ping said this week net property income was up 8.5% to $S368 million after increases in electricity charges & land rent, the amount available for distribution rose 13.6% to $S282 million, the fourth-quarter dividend was up 7% to S3.5c/unit and the full-year dividends were up 2.5% to S13.56c/unit.

The property revaluations & gains from investments took the trust’s portfolio to $S6.6 billion.

Mr Tan said A-Reit made $S946 million of new investments during the year – $S545 million in acquisitions of income-producing properties, $S248 million in development projects and  $S153 million in asset enhancement projects.

It had positive rental reversion of 5.2-15.7% across all segments of its portfolio. On a same-store basis, occupancy for multi-tenanted properties and portfolio improved from 92.1% to 92.8%, and for the whole portfolio from 96% to 96.4%. Aggregate leverage was 36.6%.

A-Reit’s portfolio has grown from 8 properties worth $S545 million when it was launched in 2002 to 102 properties worth $S6.6 billion (including one business park in Shanghai).

Link: A-Reit 2012 result & portfolio details

Earlier stories:

9 June 2011: A-Reit’s $S17,592/m² bid secures Singapore industrial site

25 May 2011: $S17,592/m² bid for industrial land – that’s Singapore

20 April 2011: Ascendas reit makes $S345 million revaluation gain

23 November 2010: Singapore’s A-Reit to expand portfolio around Asia

21 October 2009: Singapore A-Reit bottom line down but business remains strong

14 March 2008: Goodman sells out of Singapore joint venture

3 December 2004: Ascendas-Reit rapidly spending its $S400 million capital-raising

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Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.

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A-Reit’s $S17,592/m² bid secures Singapore industrial site

Published 8 June 2011

A-Reit (the Ascendas Real Estate Investment Trust) has bought a 6253m² site at Fusionopolis, within Singapore’s one-north masterplan region, for its tender price of $S110 million.

The bid – at $S17,592/m² land value for an industrial site on a 60-year lease – was made under the Singapore Government’s industrial land sales programme for land released by the Jurong Town Corp. Ascendas’ development expectation puts a $S4400/m² built value on the site for 25,000m² gross floor area at a floor:area ratio of 4:1.

Both the buyer’s manager and the seller are Government-controlled entities.

Earlier story:

25 May 2011: $S17,592/m² bid for industrial land – that’s Singapore

 

Want to comment? Go to the forum.

 

Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.

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