REIT Oracle

Acrophyte Hospitality Trust Is Facing Capital Needs, Considering Multiple Options

Acrophyte Hospitality Trust is announcing that it is in need of about US$100 million for asset enhancement initiatives for 25 of its 33 hotel properties. The managers are initiating a strategic review and considering different options:

(i) a temporary suspension or reduction of distributions; (ii) options for equity fund raising; and/or (iii) a recalibration of the portfolio such as brand repositioning

The Managers are also in discussion with the Sponsor on the options for a transaction relating to the Stapled Securities

CapitaLand China Trust Sells Mall, Takes Stake in Upcoming C-REIT

CapitaLand China Trust is selling CapitaMall Yuhuating in Changsha, China:

The trust will sell the asset at a floor price of 748 million yuan, based on independent valuations. Gross proceeds from the transaction are expected to reach 738.5 million yuan, with net proceeds of about 595.3 million yuan after deducting transaction costs and the subscription amount.

Part of the proceeds will be redeployed into CapitaLand Commercial C-REIT:

From the gross proceeds, CLCT intends to allocate around S$20.7 million to subscribe for 5 per cent of the commercial real estate investment trust’s (C-Reit) initial public offering (IPO) units. The subscription will be subject to a five-year lock-up period.

Elite UK REIT Buys Three Assets, Makes Private Placement

Elite UK REIT is acquiring three freehold properties currently leased by the British government for £9.2 million:

The seller is Elite Phoenix, a subsidiary of Elite UK Commercial Fund II. The deal was struck at a 7.6 per cent discount to the average of the independent valuations of these assets.

To fund the transaction, the trust is organizing a £4 million private placement, issuing 13.3 million new shares at a pricing between £0.295 and £0.305 per share.

On a pro forma basis for FY2024, the properties are expected to be 0.6 per cent distribution-per-unit accretive, and gearing would have reduced by 20 basis points to 43.2 per cent.

Sasseur REIT Gets 508 Million Yuan Loan From Sponsor

Sasseur REIT is getting refinancing help from its sponsor with a 508 million yuan unsecured loan:

The proceeds from the sponsor loan will help to repay existing offshore bank loans, due in March 2026. As the sponsor loan is denominated in renminbi, this will result in cost savings for the Reit, the manager said in a bourse filing on Friday (Jun 6).

Acrophyte Hospitality to Sell Auburn Hills Hotel

Acrophyte Hospitality Trust is divesting of its hotel in Auburn Hills (Michigan) for US$6.7 million:

An independent appraiser valued the property at US$7 million as at December 2024, said the managers.

Net divestment proceeds are estimated to be around US$6.2 million, after factoring in a divestment fee for the managers of US$33,000, or 0.5 per cent of the sale consideration, and US$436,000 in transaction costs that the sale is expected to incur.

CapitaLand Malaysia Trust to Raise Equity to Reduce Debt

CapitaLand Malaysia Trust wants to issue RM250 million in a private placement offering in order repay bank loans:

The exercise involves the issuance of up to 435.4 million new units, or approximately 14.9% of its total issued units. The new units will be offered to its sponsors and institutional investors, including the Employees Provident Fund (EPF) and Kumpulan Wang Persaraan Diperbadankan (KWAP), with the final issue price to be determined via a bookbuilding exercise.

CapitaLand Ascendas Buys Two Singapore Properties for S$700 Million

CapitaLand Ascendas REIT is acquiring a data centre and a business park in Singapore, for S$700.2 million:

The two properties are a Tier III colocation data centre at 9 Tai Seng Drive and a premium business space property at 5 Science Park Drive.

With a purchase consideration of around S$700.2 million, the proposed acquisitions will raise the value of Clar’s Singapore portfolio by 6.6 per cent to around S$11.7 billion. The Singapore portfolio will account for 67 per cent of its total assets under management (AUM) of S$17.6 billion.

To finance the operation, the trust has realized a private placement of S$500 million at S$2.47 per new share:

The price is a discount of 5.2 per cent of the volume weighted average price (VWAP) of S$2.6059 on Tuesday (May 27), its last traded closing price. Trading in the counter resumes on Thursday.

Japan's NTT to List Data Centre REIT in Singapore

Japanese telecom operator NTT will IPO a datacentre REIT in Singapore:

In its financial results released on May 9, NTT released details of its planned real estate investment trust (Reit) listing here. Six of its data centre assets will be transferred to the proposed Singapore Reit called NTT DC Reit for the price of around US$1.6 billion.

Brookfield Asset Management Looking for S-REIT Deals

The Business Times reports on Brookfield Asset Management hunt for deals in Singapore:

Many listed Reits in the country are trading at discounts to their net asset value, said Andrew Burych, managing partner and head of East Asia for the Canadian investment giant’s real estate group.

It’s “pretty interesting to work with these Reits to see if there are transactions we can do with them, so that they can recycle the capital into more core businesses,” he said.

Mapletree Industrial Sells Three Singapore Properties

Mapletree Industrial Trust is divesting of three industrial properties in Singapore for S$535.3 million:

The price is a 2.6% premium over the independent valuations of the properties as of March 31, and 22.1% over their original investment cost of $438.4 million.