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					              Trust Management (Suntec) Limited
                                                                  Manager of


Suntec Real Estate Investment Trust




      SUNTEC REIT TO ACQUIRE A 51 PER CENT. INTEREST IN HARMONY
       PARTNERS INVESTMENTS LIMITED WHICH HOLDS A 80 PER CENT.
      INTEREST IN SUNTEC SINGAPORE INTERNATIONAL CONVENTION &
                          EXHIBITION CENTRE

1.     Introduction

1.1    ARA Trust Management (Suntec) Limited, as manager of Suntec REIT (the “Manager”), is
       pleased to announce that HSBC Institutional Trust Services (Singapore) Limited, as trustee of
       Suntec REIT, has today through its wholly-owned subsidiary, Suntec Harmony Pte. Ltd.
       (“Suntec Harmony”), entered into a share sale agreement (the “Share Sale Agreement”)
       with an investor group (collectively, the “Vendors”) pursuant to which Suntec Harmony
       agrees, subject to the satisfaction of certain conditions, to acquire 510 ordinary shares in the
       capital of Harmony Partners Investments Limited (“HPIL”), constituting 51 per cent. of the
       issued share capital of HPIL, and all the rights, title, benefits and interest in such percentage
       of shareholders’ loans provided by the Vendors to HPIL constituting 51 per cent. of all
       shareholders’ loans provided to HPIL, for an aggregate consideration of S$114,750,000 (the
       “Proposed Acquisition”).

1.2    The Vendors comprise (i) Bright Assets Enterprises Limited, (ii) Crescendo Investments
       Group Limited, (iii) KCY Investments Limited and (iv) Clavon Capital Inc..

1.3    Currently Suntec REIT through Suntec Harmony has an effective interest of 20.0 per cent. in
       the Suntec Singapore International Convention & Exhibition Centre (“Suntec Singapore”).
       Upon completion of the Proposed Acquisition, Suntec REIT through Suntec Harmony will
       have an aggregate effective interest of 60.8 per cent. in Suntec Singapore.

1.4    Completion of the Proposed Acquisition is subject to the satisfaction or waiver of the
       conditions specified in the Share Sale Agreement and is expected to take place on or around
       18 August 2011 or such other date as Suntec Harmony and the Vendors may agree.

2.     Consideration

2.1    The aggregate consideration for the Proposed Acquisition of S$114,750,000 was arrived at
       after arm’s length negotiations on a willing buyer, willing seller basis, and taking into account
       the valuation of Suntec Singapore.

2.2    The Manager and Trustee have commissioned an independent property valuer, Colliers
       International (Singapore) Pte Ltd, to value Suntec Singapore. The open market value of
       Suntec Singapore is S$400 million as at 1 August 2011. The valuation is based on income
       capitalisation approach, discounted cash flow analysis and direct comparison method.




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3.        Method of Financing

          The aggregate consideration will be payable in cash on completion of the Proposed
          Acquisition, and this will be funded by bank borrowing. Following the Proposed Acquisition,
          Suntec REIT’s gearing ratio is expected to increase marginally from 38.5% to 39.7% after the
          completion of the Proposed Acquisition. Suntec REIT’s aggregate leverage (as defined in the
          Property Funds Appendix) will be approximately 41.6%1 after the completion of the Proposed
          Acquisition.

4.        Financial Effects of the Proposed Acquisition

4.1       Assumptions

          The pro forma financial effects of the Proposed Acquisition presented below are strictly for
          illustration purposes and do not reflect the actual financial position of Suntec REIT after
          completion of the Proposed Acquisition. They have been prepared based on the latest
          audited financial statements of Suntec REIT for the financial year ended 31 December 2010
          (“FY2010”), taking into account the aggregate consideration of and the assumption that the
          Proposed Acquisition is funded wholly by bank borrowing.

          The proforma financial effects of the Proposed Acquisition on the total returns attributable to
          unitholders and distribution per unit (“DPU”) of Suntec REIT are based on the assumptions
          that Suntec REIT had completed the Proposed Acquisition on 1 January 2010 and through
          Suntec Harmony held an aggregate effective interest of 60.8 per cent. in Suntec Singapore
          through to 31 December 2010.

4.2       Pro Forma total returns attributable to unitholders

          The FY2010 pro forma total returns attributable to unitholders attributable to the Proposed
          Acquisition is approximately S$31.5 million2.

4.3       Pro Forma Net Asset Value (“NAV”)

          The table below sets out the pro forma financial effects of the Proposed Acquisition on the
          NAV per unit of Suntec REIT as at 31 December 2010, as if the Proposed Acquisition was
          completed on 31 December 2010, assuming that the Proposed Acquisition is funded wholly
          by bank borrowing.

                                                          Before acquisition                   After acquisition
           NAV per unit (S$)                                    1.804                                1.870

4.4       Pro Forma DPU

          The table below sets out the pro forma financial effects of the Proposed Acquisition on Suntec
          REIT’s DPU for FY2010, as if Suntec REIT had completed the Proposed Acquisition on 1
          January 2010 and through Suntec Harmony held an aggregate effective interest of 60.8 per
          cent. in Suntec Singapore through to 31 December 2010.

                                                          Before acquisition                   After acquisition
           DPU (cents)                                          9.859                                9.979




1
  The Property Fund Appendix provides that the aggregate leverage ratio of Suntec REIT may exceed 35.0% (up to a maximum
of 60.0%) if a credit rating of the REIT is obtained and disclosed to the public. Suntec REIT is currently rated Baa2 by Moody’s.
2
  Based on the consolidation of HPIL as at 31 December 2010, after adjusting for additional borrowing costs, the Manager’s
management fees and trust expenses.



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5.          Information on Suntec Singapore

5.1         Situated within Singapore’s Downtown Marina Centre precinct and only 20 minutes from
            Changi International Airport, Suntec Singapore is an award-winning international venue
            comprising approximately one million square feet of floor space spread over six levels catered
            to meetings, conventions and exhibitions.

5.2         Suntec Singapore is part of the iconic integrated commercial development known as Suntec
            City comprising Suntec Singapore, five Grade A office towers with over two million square
            feet of net lettable area and one of Singapore’s largest shopping mall with over 800,000
            square feet of retail space. In addition to its world-class facilities, Suntec Singapore offers
            direct access to 5,200 hotel rooms, 1,000 retail shops and 300 restaurants within the Suntec
            City vicinity. Suntec City is easily accessible by car and public transport networks.

6.          Rationale for the Proposed Acquisition

6.1         The Manager believes that the Proposed Acquisition will benefit Unitholders in the long term
            as the Proposed Acquisition fits the Manager’s principal investment strategy for Suntec REIT
            to invest in quality income-producing assets. The Manager believes that the increase in
            Suntec REIT’s interest in Suntec Singapore will be a strategic addition to Suntec REIT’s
            existing portfolio, providing opportunities to integrate and enlarge Suntec REIT’s existing
            interest in the entire Suntec City development and to unlock the underlying value of the
            assets.

6.2         The Manager believes that Suntec Singapore is a quality asset which will enhance Suntec
            REIT’s existing portfolio of properties in Suntec City. Suntec Singapore enjoys several key
            competitive strengths including (i) strategic location in the downtown core of Singapore, (ii) its
            excellent connectivity and accessibility with its direct link to one of Singapore’s major MRT
            interchange stations, City Hall MRT, as well as two MRT stations in the Circle MRT line – the
            Esplanade and Promenade Stations, offering seamless and sheltered commuting for Suntec
            Singapore’s visitors and tenants and (iii) large floor space spreading over six levels of
            meeting space, offering conference and exhibition planners abundant choice from a range of
            venues to accommodate different events.

7.          Interests of Directors

            Based on the information available to the Manager as at the date of this announcement, none
            of the directors of the Manager or substantial Unitholders have any interest, direct or indirect,
            in the Proposed Acquisition.

8.          Inspection of Documents

            A copy of the Share Sale Agreement and the valuation report of Suntec Singapore is
            available for inspection during normal business hours at the registered office of the Manager
            at 6 Temasek Boulevard, #16-02 Suntec Tower Four, Singapore 038986 for a period of three
            months from the date of this announcement.3

By Order of the Board
ARA Trust Management (Suntec) Limited
(Company registration no. 200410976R)
(as manager of Suntec Real Estate Investment Trust)

Yeo See Kiat
Director
12 August 2011



3
    Prior appointment with the Manager will be appreciated.



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ABOUT SUNTEC REIT


Listed on 9 December 2004, Suntec REIT holds properties in Suntec City, Singapore’s largest integrated
commercial development (including one of Singapore’s largest shopping mall), Park Mall, Chijmes, a one-third
interest in One Raffles Quay, a one-third interest in Marina Bay Financial Centre Towers 1 and 2, the Marina Bay
Link Mall and a 20.0% interest in Suntec Singapore International Convention & Exhibition Centre. Its aim is to
invest in income-producing real estate which is primarily used for retail and/or office purposes. Suntec REIT is
managed by an external manager, ARA Trust Management (Suntec) Limited.



ABOUT ARA TRUST MANAGEMENT (SUNTEC) LIMITED


ARA Trust Management (Suntec) Limited, part of the ARA Asset Management Limited group (“ARA”), is the
manager of Suntec REIT. ARA, a real estate fund management company, is an affiliate of the Cheung Kong
Group, and is listed on the Main Board of Singapore Exchange Securities Trading Limited (the “SGX-ST”).
ARA’s business segments comprise REIT management, private real estate fund management, and specialist
equity fund management and corporate finance advisory services. For more details, please visit www.ara-
asia.com.




IMPORTANT NOTICE

The value of units in Suntec REIT (“Units”) and the income derived from them, if any, may fall or rise. Units are
not obligations of, deposits in, or guaranteed by, ARA Trust Management (Suntec) Limited (as the manager of
Suntec REIT) or any of its affiliates. An investment in Units is subject to investment risks, including the possible
loss of the principal amount invested.


Investors should note that they will have no right to request the Manager to redeem or purchase their Units for so
long as the Units are listed on the SGX-ST. It is intended that holders of Units may only deal in their Units
through trading on the SGX-ST. The listing of the Units on the SGX-ST does not guarantee a liquid market for the
Units.


The past performance of Suntec REIT is not necessarily indicative of the future performance of Suntec REIT.




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