Archive | Stockland

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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Botany half-owner Stockland boosts profit 16%

Published: 8 February 2005

Stockland Property Group increased net profit by 16.2% to $A255 million in the December half, before amortisation of the goodwill on its AMP Diversified Property Trust takeover, unrealised loss on financial instruments & capital profits on the sale of investment properties.

Earnings/security rose 5.3% to A19.8c, before non-operational items.

Net tangible assets reached $A5.2 billion, nta/security rose 6.1% from June to $A3.99.

Stockland gained $A242 million in revaluations, from a combination of strong rental growth & firming cap rates.

Total assets rose 14.5% from June to $A8.3 billion, including the acquisition of the Lensworth portfolio in December for $A846 million.

Managing director Matthew Quinn said gearing was 27.5% at the 31 December balance date, within the 25-35% target range.

Stockland continues with its bid for the General Property Trust, which would create a property group with $A15 billion of assets. The offer has been extended to Friday 4 March.

The group presents full details of its property portfolio in an 83-page report which is on its website. Details include book values & rents across the portfolio, with costs, valuation dates, cap & discount rates for every property.

Stockland’s June 2004 valuation of its 50% of the Botany Town Centre in Auckland is $A12.4 million above cost, including additions. The book value is $A108.5 million, at $A4016/m², compared to the $A96.1 million cost. Capitalisation rate is 7.63%, discount rate 10.5%. Gross lettable area is 54,034m², annual sales $NZ201.1 million.

The New Zealand asset, developed by AMP Capital Investors NZ Ltd and still 50% owned by it, was part of a 3-property package in which a half-interest was sold in August 2002 to the AMP Diversified Property Trust, listed in Australia. Stockland then took over AMP Diversified. The other 2 properties in the package are the Lynmall Shopping Centre & Manukau Supa Centa

Website: Stockland


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Stockland finds buyer as Optus plans move to new HQ

Stockland Corp Ltd has found a buyer for the Miller St, North Sydney, building it will empty in 2007 when the tenant, Optus, moves to a new $A350 million Stockland office park at North Ryde.

Stockland announced Optus’ decision to move its headquarters to North Ryde once it got development approval in November, leaving the fate of the North Sydney building up in the air.

Abacus Property Group, having a growth spurt of its own, signed up to buy 50 Miller St for $A36.25 million, settling on Friday 17 December. Story: Abacus buys Optus office, Cairns hotel, establishes investment fund with Metcash

Optus’ new headquarters will have 84,000m² in 6 buildings

Australian telecommunications company Optus, owned by SingTel of Singapore, will move 6500 staff to a single campus headquarters in July 2007. The purpose-built campus, CentreCourt Estate in Macquarie Park, North Ryde, will be the largest of its kind in Australia. It will be spread across 8ha and offer 84,000m² of office space in 6 separate buildings.

Optus intends to spend up to $A150 million on fit-out over 2 years, but also expects to save up to $A20 million/year on rent.

The office park site will have retail facilities, a childcare centre, gym, foodcourt and parking for 2100 cars.

Stockland managing director Matthew Quinn said the group would consider launching an unlisted fund for a share of the ownership of the new Optus headquarters, following the success of its Stockland Direct Office Trust No1, which recently closed oversubscribed.

Stockland has entered into a fixed-time, fixed-term arrangement with Baulderstone Hornibrook to build the office park, designed by Rice Daubney.

Websites: Abacus Property Group


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Stockland becomes Australia’s biggest residential developer with Lensworth purchase

Stockland Trust bought Foster’s Group Ltd’s Lensworth property development business on Thursday 9 December for $A846 million (including $A21million.working capital), making it the biggest residential developer in Australia.

Stockland took control of the AMP Diversified Property Trust, including interests in New Zealand commercial property assets, last year and has a bid for General Property Trust under way now. A bidder’s statement on the GPT bid, including some less rosy figures required by the Australian Takeovers Panel, will go out on Monday 13 December.

Stockland managing director Matthew Quinn said the Lensworth acquisition was consistent with Stockland’s strategy of strengthening its residential development business, with the aim of increasing market share, achieving economies of scale & growing profits.

He said Lensworth’s portfolio of 17 high-quality long-term projects, containing 29,600 lots with an end value exceeding $A7.6 billion, would complement the Stockland portfolio. “It consists primarily of large, master-planned urban community-based projects, with most properties located in key growth corridors currently targeted by Stockland. There is minimal crossover with Stockland’s existing land bank.

“The acquisition will provide Stockland with increased exposure to the south-east Queensland residential market, which is widely acknowledged as having strong long-term growth prospects.”

The combined portfolios would contain 66,000 lots in 96 residential & apartment projects containing with an $A15 billion end value.

Mr Quinn said the transaction would be entirely debt funded, and gearing on completion would be 31%.

He said Stockland had identified a number of development opportunities within the Lensworth portfolio which could generate significant annuity-style income through Stockland’s unlisted property funds business. Synergies would also arise through Stockland’s ability to leverage its existing infrastructure to manage the Lensworth portfolio.

Lensworth’s inventory had a book value of $A315 million at 30 June and its net asset value was $A201.3 million. It generated $A49.8 million ebita for the year from $A245.3 million revenue. Its 6600ha land bank included 3600ha of unzoned rural land, while the 3000ha zoned area had an estimated lot yield exceeding 22,000 dwellings.

During the 5-month due diligence process, the 3700ha Caloundra project was included in the South-east Queensland urban footprint, increasing its value significantly. It’s expected to yield 12,000 dwellings over 10 years, with development expected to start in 2012.

Website: Stockland

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Stockland files bid for GPT

Stockland Trust filed its 138-page offer memorandum for the takeover of General Property Trust today.

The $A3.65/unit proposal, which follows defeat of Lend Lease Corp Ltd’s bid to merge with GPT, would create an $A15 billion listed property trust.

It would also mean the end to Lend Lease’s management of GPT.

Most recent earlier stories:

18 November 2004: Lend Lease merger with GPT blocked

9 November 2004: Stockland upsets the Lend Lease applecart

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Stockland closes first direct investment trust early

Stockland property group has closed the single-asset Stockland Direct Office Trust No 1’s $A66.5 million offer ahead of schedule after an overwhelming response from small investors since it opened on 14 September.

Stockland is a stapled security, combining a property investment trust & a management & development company. The unlisted funds business was established in January and Waterfront Place was its first offering.

The trust was launched on 14 September to buy a 50% interest in Waterfront Place in Brisbane. Stockland & Westpac Bank bought the property from AMP through a subsidiary in February with the intention of syndicating the bank’s half, while Stockland Trust retained the other half.

Stockland Unlisted Property Funds chief executive Robb Macnicol said the response was extraordinary, but reflected the high demand for high-quality unlisted products. He said Stockland would consider more direct property investment opportunities for both retial & wholesale investors.

More to the point, Stockland & Westpac made the offer particularly attractive.

Investors were offered ungeared $A1 units or geared units, through Westpac Investment Bank, with 60% payable in June 2010. Property Investment Research said in its report on the offering, the fund’s rating under the ungeared option was assisted by the high tax advantage of 100% for the expected initial 6-year term of the syndicate.

“As the distribution is 100% tax effective, the yield grosses up to 11.9% on a post-tax basis for an investor on the top marginal tax rate. Downside risk to investor income has been mitigated by $A3 million of rental income support from the vendor until June 2008.”

The 39-storey 10-year-old building was valued at $A291 million in June, on a 7.68% initial yield. It has 58,885m² gross lettable area, with a value of $A4942/gross m², and 493 basement parking spaces.

Website: Stockland

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