PARAGONREIT   

SPH Reit

SPH Reit to take stake in second Australian mall for A$670 million

THU, NOV 07, 2019 - 6:52 PM
 

SPH Reit plans to take a half-stake in a shopping centre Down Under for A$670 million (S$627.9 million), to be funded by proceeds from a recent perp issue plus debt and/or equity fund-raising, in a deal with Lendlease Real Estate Investments inked on Thursday.

The manager, which in December 2018 bought a majority interest in a New South Wales mall, said that the latest transaction involving the 1.5 million square feet Westfield Marion Shopping Centre &ldquo deepens strategic presence in Australia with entry into attractive and stable Adelaide market&rdquo .

Freehold Westfield Marion, billed as &ldquo the only super-regional shopping centre&rdquo in the state of South Australia, has three storeys of retail space and five office floors, with 5,270 parking lots.

The mall, which is next to Oaklands Train Station, is about 10 kilometres away from the central business district of state capital Adelaide, while its anchor tenants include department stores David Jones, Myer, and Harris Scarfe, and supermarkets Aldi, Coles, and Woolworths. On a pro forma basis, the transaction would have upped full-year distribution per unit from 5.6 Singapore cents to 5.69 Singapore cents if it were done on Sept 1, 2018, SPH Reit&rsquo s manager said.
 

It said that it planned to pay for the Westfield Marion deal with a mix of proceeds from the August 2019 issuance of S$300 million of perpetual securities, as well as debt and/or equity fund-raising, with a decision on the timing and share of funding yet to be made.

The manager will also arrange a bridging loan facility that can be drawn upon to fully fund the acquisition if need be, it added.

The price tag, reached on a willing buyer, willing seller basis, took into account an independent valuation of Westfield Marion at A$679.5 million.

According to the manager&rsquo s bourse filing, the transaction will increase SPH Reit&rsquo s portfolio weighted average lease expiry, by net lettable area, to 5.1 years, up from 3.2 years as at Aug 31, 2019.

Also, Australian assets would make up 19.7 per cent of the Reit&rsquo s portfolio value, up from 5.3 per cent before. SPH Reit already owns an 85 per cent stake in Figtree Grove Shopping Centre in Wollongong, New South Wales, and interests in three Singapore properties.

Under the deal, SPH Reit will enter a joint venture partnership with retail real estate investment trust Scentre Group, which owns and runs Westfield malls in Australia and New Zealand.

&ldquo The acquisition will enhance the sustainability and resilience of SPH Reit&rsquo s returns to unit holders through the increased geographic diversity, larger freehold land tenure, and longer underlying leases with embedded rental growth potential,&rdquo said Susan Leng, chief executive of the manager.

The counter shed  S$0.01, or  0.87 per cent, to S$1.14, before the announcement.

https://www.businesstimes.com.sg/companies-markets/sph-reit-to-take-stake-in-second-australian-mall-for-a670-million
 


 

 

FRI, JUL 12, 2019 - 5:50 AM
 

CONTRIBUTIONS from its purchases of malls in Singapore and Australia boosted results for retail landlord SPH Reit for its third quarter ended May 31.

Distribution per unit (DPU) climbed 1.5 per cent to 1.39 Singapore cents from 1.37 cents in the preceding year, and Q3 income available for distribution grew 4.8 per cent to S$36.8 million from the previous year.

Payment date is Aug 22.  For the three months ended May 31, gross revenue increased 12.7 per cent to S$58.3 million from the year-ago period, thanks to contributions from The Rail Mall and Figtree Grove Shopping Centre in New South Wales.
 

They were acquired in 2018, on June 28 and Dec 21 respectively.

Net property income rose 14.2 per cent to S$46.3 million from the previous year.

For the nine months ended May 31, DPU rose to 4.14 Singapore cents, from 4.11 cents. Income available for distribution in the nine-month period rose 1.8 per cent to S$109.7 million.

The Reit' s committed occupancy by net lettable area (NLA) was 99 per cent as at May 31. Fiscal year-to-date as of May 31,  the overall portfolio registered a positive rental reversion of 8.4 per cent, which SPH Reit said was due to growth in overall tenant sales.

Susan Leng, chief executive of SPH Reit' s manager, said: " The tourist arrivals and spend for 2018 ended on a positive note and we believe Paragon would stand to benefit with this trend. The Clementi Mall is well poised in the suburban to continue to serve its immediate catchment.

" The Rail Mall is a unique cluster of shop units, with opportunity for us to further strengthen its current F& B (food and beverage) mix and create a differentiated positioning for the asset. Our focus remains to drive long-term value of our properties and deliver sustainable returns for our unitholders."

SPH Reit said it plans to keep its malls relevant to consumers' changing demands, implement asset enhancement initiatives and explore acquisition opportunities.

SPH Reit currently owns Paragon Mall, The Clementi Mall and The Rail Mall in Singapore as well as an 85 per cent stake in Figtree Grove Shopping Centre.

There is one applicable right of first refusal property The Seletar Mall.   

SPH Reit' s sponsor, Singapore Press Holdings (SPH) , publishes The Business Times.

The Reit' s units closed at S$1.12, up S$0.01 or 0.9 per cent on Thursday before results were announced.


 

 

Looks like the price couldn' t move much from pre-ann' t of Q2 report to now,... mkt is not confident.

 

More like risk-return thing here, bro,... I can' t find another ' income ctr' that is safer than this for the time being,...

Perhaps I have not looked hard enough, have not analysed hard enough, have not thought hard enough,....

runaway      ( Date: 07-Apr-2019 18:08) Posted: SPHREIT so hot meh? Why is there another thread without a Title?

 

SPHREIT so hot meh?

Why is there another thread without a Title?

 

 

SPH owns 68% of SPH REIT.

水 涨 船 高 。 If SPH REIT chiong, the mother SPH   will Huat!

 

 

This statement appeared in the  article below : Our model suggests that Clementi Mall&rsquo s NPI would be just over S$30m by the end of FY18F.

Looking at the Financial Statement Ann' t for the period ended 31 August 2018, page 16, the following is seen under the Segment Results.

The Clementi Mall

7,196

7,854

(8.4)

30,287

29,815

1.6

Hence,... at an NPI of 30.287Mil  at end-FY18, the DBS Treasures analyst was spot-on in his/her predictions,...

laksaman57      ( Date: 06-Aug-2017 18:54) Posted: https://www.dbs.com.sg/treasures/aics/templatedata/article/recentdevelopment/data/en/DBSV/072017/SPHREIT_SP_07132017.xml?sessioncheck=true

 

..." the short lease tenure of 28 years could be too short for the manager to gain a decent return on capital on the property."
https://www.theedgesingapore.com/can-sph-reit-do-its-magic-rail-mall

 

"In such cases, Mr Ku said, the authorities would allow the owners and tenants to continue with the same use even if zoning changed during recent revisions to the master plan.

He added that even if the authorities were to allow a lease top-up, it would be costly.

Given the short lease left, a new owner would want a high enough cashflow to break even."

https://www.straitstimes.com/business/property/rail-mall-owners-seeking-buyers

 

https://www.straitstimes.com/business/property/rail-mall-owners-seeking-buyers-0

investshare      ( Date: 02-May-2018 07:09) Posted: I thought rail mall owned by OCBC?

 

I thought rail mall owned by OCBC?

 

Conservative back of envelope shows SPH Reit cost recovery within 12 years.
If it can reposition the properties well, the returns can be hugely lucrative.
 

 

Sphreit dont have the necessary people to manage their reit. Not sure the new ceo will focus on this.

 

That?s a pretty stupid buy - honest. And no potential for GFA enhancement.

Jamesbond007      ( Date: 01-May-2018 14:00) Posted: Not Seletar Mall, but The Railway Mall. But remaining lease period is only 28 years. Wondering the real reasons brhind the acquitision. Not in the category of The Paragon and Clementi Mall.

 

Not Seletar Mall, but The Railway Mall.
But remaining lease period is only 28 years.
Wondering the real reasons brhind the acquitision.
Not in the category of The Paragon and Clementi Mall.




 

 

http://research.sginvestors.io/2017/10/singapore-press-holdings-sph-sp-uob-kay-hian-2017-10-12.html

 

Its time worth to monitor This counter liao.

 

https://www.theedgesingapore.com/acquisition-seletar-mall-could-spur-steady-sph-reit

 

https://www.fool.sg/2017/10/10/sph-reits-latest-earnings-what-investors-should-know-2/

 

http://sgx.i3investor.com/m/blog/sgxstockwarrant/30409.jsp