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CapitaLand to take over Ascendas & Singbridge portfolios

Singaporean property giants CapitaLand Ltd & AscendasSingbridge Pte Ltd announced their intention to merge their interests yesterday, in a $S11 billion deal combining $S116 billion of assets under management in 6 asset classes in 180 cities & 32 countries.

Current asset totals are $S92 billion for CapitaLand, $S24 billion for Ascendas-Singbridge.

In the background is Singapore Government-owned Temasek Holdings (Pte) Ltd, incorporated in 1974 and holding a $S308 billion portfolio at March 2018, mainly in Singapore & through Asia. Temasek owns AscendasSingbridge and will increase its holding in CapitaLand from 40.8% to 51% through this transaction.

In the transaction, CapitaLand will buy the Ascendas & Singbridge subsidiaries from AscendasSingbridge Pte Ltd, subject to a vote by CapitaLand’s independent shareholders, expected to be called in the first half of this year, with completion of the deal in the third quarter. Temasek will receive $S3 billion cash, $S3 billion in CapitaLand shares.

The shares are priced at $S3.50, representing an 11.3% (S36c) premium over CapitaLand’s one-month volume-weighted average price of $S3.1447.

CapitaLand owns & manages a $S92 billion global portfolio comprising integrated developments, shopping malls, lodging, offices, homes, real estate investment trusts & funds. Its core markets are Singapore & China, but it operates in 160 cities in 32 countries. It has one of the largest investment management businesses in Asia and a stable of 5 reits listed in Singapore & Malaysia – CapitaLand MallTrust, CapitaLand Commercial Trust, Ascott Residence Trust, CapitaLand Retail China Trust & CapitaLand Malaysia Mall Trust.

Ascendas Pte Ltd & Singbridge Pte Ltd completed their merger to form the Ascendas-Singbridge group in June 2015. The group is jointly owned by Temasek & JTC Corp (both state-owned) through a 51:49 partnership.

Ascendas-Singbridge Group undertakes projects spanning townships, mixed-use developments, business/industrial parks, offices, hotels & warehouses in Asia, Australia, Europe & the US. It’s a real estate fund manager and holds a portfolio of commercial, hospitality & industrial assets.

Ascendas launched Singapore’s first business space trust, the Ascendas Real Estate Investment Trust (A-REIT), in 2002 and listed the first Indian property trust, Ascendas India Trust (a-iTrust), in 2007. In 2012, it listed the Ascendas Hospitality Trust (A-HTRUST). Ascendas also manages a series of private funds with commercial & industrial assets across Asia.

Ascendas has introduced new business space concepts such as integrated communities & solutions, which combine business, lifestyle, retail & hospitality spaces to create work-live-play-learn environments. Its flagship projects include Singapore Science Park & Changi City at Changi Business Park in Singapore, International Tech Park Bangalore in India and Ascendas-Xinsu in Suzhou Industrial Park in China.

Singbridge invests in, develops & manages integrated cities & sustainable urban solutions in Asia, particularly in China. Its projects include the Guangzhou Knowledge City, the Chao Tian Men mixed development in Chongqing, Chengdu Hi-Tech Innovation Park and the Jilin Food Zone.

Links:
Ascendas-Singbridge
Ascendas REIT
CapitaLand
Temasek

Attribution: CapitaLand, Ascendas-Singbridge.

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CapitaLand launches 2 rights issues for $S3 billion

Published 11 February 2009

Listed Singapore property giant CapitaLand Ltd announced a substantially lower profit and launched 2 heavily discounted rights issues on Monday for a total $S3.07 billion.

 

One issue of $S1.84 billion is for the head company and the other, an $S1.23 billion issue, is for a subsidiary, the CapitaMall Trust.

 

The 1:2 CapitaLand issue is priced at $S1.30, compared to NTA of $S3.57.

 

Group president & chief executive Liew Mun Leong spoke of a strong 2008 performance – the third consecutive profit over $S1 billion, second-highest profit after tax & before minority interests – but the result was well down on 2007’s bumper earnings.

 

Mr Liew highlighted assets under management up 46% to $S25.9 billion, fund management fees up 53% to $S182 million and property management fees up 16% to $S231 million. But revenue fell 27.4% to $S2.75 billion, ebit 42.1% to $S2.2 billion, profit after tax & minority interests (patmi) 54.3% to $S1.26 billion, patmi excluding fair-value gains 39.1% to $S1 billion, earnings/share 54.7% to S44.7c. NTA rose by 1.1% to $S3.57/share – highlighting the discount at which the rights issue is being made.

 

The mall trust issue price of S82c/share represents a 43.4% discount on last Friday’s closing price of $S1.45/unit, 49.1% on the $S1.61/unit 30-day volume-weighted average price immediately preceding 9 February, 28.7% on the theoretical ex-rights price of $S1.15/unit.

 

CapitaLand Ltd will at least maintain its 29.7% interest in the trust, and the Government-controlled investment entity, Temasek, said it would take up its rights in CapitaLand. It has direct & deemed interests of 41.5% of CapitaLand.

 

Mr Liew said the CapitaLand issue was to strengthen its balance sheet, especially to take advantage of opportunities in the global downturn – 60% of CapitaLand’s 2008 profit came from outside Singapore.

 

The trust issue is principally to repay $S956 million of borrowings due in May & August, the balance for general corporate & working capital purposes. The issue will cut the trust’s aggregate leverage from 43.2% in December to 29.1%. The trust will hold an extraordinary meeting on Monday 2 March to approve its issue.

 

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Attribution: Company releases, presentation, results, story written by Bob Dey for the Bob Dey Property Report.

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