TODAY'S HEADLINE

FIRST REIT  
First REIT has entered into conditional sale and purchase agreements for the proposed acquisition of two new properties in Indonesia. The proposed acquisitions comprise an integrated hospital and hotel in Manado, and another hospital in Makassar in Indonesia's southern province of Sulawesi, both of which will be purchased from two wholly'owned units of PT Lippo Karawaci Tbk (First REIT's sponsor) for a combined purchase consideration of approximately S$142.9 million.

The acquisition of Siloam Hospitals Manado & Hotel Aryaduta Manado at a consideration of S$83.6 million will be funded by a combination of committed debt and proceeds from a proposed private placement exercise while the purchase of the S$59.3 million Siloam Hospitals Makassar will be 'nanced entirely by a drawdown of committed debt.  

PT Lippo Karawaci Tbk, First REIT's sponsor and Master Lessee of the two properties, has signed conditional master lease agreements for lease terms of 15 years, with an option to renew for a further term of 15 years. The two properties are estimated to earn a total of $14.1mil in net rental income, or 26% of First REIT's $53.4mil net pro't in 2011.

We view this as a positive development for First REIT (UNRATED, S$1.03). The acquisition of two hospitals in Indonesia not only improves its por''olio diversi'cation in terms of locations and medical specializations but also enhances its weighted average lease expiry pro'le (WALE). The acquisitions are expected to improve its WALE from 10.8 years to 11.7 years. More importantly, the acquisitions would strengthen First REIT's reach in Indonesia, a market we perceive to be highly attractive on the back of strong underlying demographics and the government's aim of improving healthcare access to the public. Given that the acquisition of Siloam Hospitals Manado & Hotel Aryaduta Manado is to be funded by a mix of committed debt and cash from private placement exercise, we expect First REIT's aggregate leverage to remain below 30% (lower than the regulatory limit of 35%), which should provide comfortable headroom to support its future acquisitions.

NEWS BUZZ
Dyna'Mac Holdings (S$0.545)
Bags US$42m of fabrication orders
Dyna'Mac Holdings has secured new fabrication orders worth a provisional sum of US$42mil. The orders are expected to contribute positively to 2012 EPS but the impact on NTA per share will not be material.

Hai Leck Holdings (S$0.17) 
Plans rights issue of warrants
Hai Leck Holdings has proposed a renounceable rights issue of one warrant for every four shares. Each warrant will be issued at 5 cents and may be converted into one common share at 13 cents. The o'er is not underwritten, but chairman Cheng Buck Poh and his investment vehicle have promised to mop up any unexercised rights. Expected net proceeds of about $3.9mil will be used for working capital and business expansion.

Asia Paci'c Breweries (S$53.00) 
NZ unit to sell 25% of Glen'eld Hospitality
Asia Paci'c Breweries' New Zealand subsidiary, Barworks Holdings, will be selling its 25% stake in Glen'eld Hospitality to Cleghorn's Return Family Trust for NZ$25 (S$25.40). Holding company Barworks Group will stay with its 75% stake. The negative NTA value of the shares is NZ$18,800 based on Glen'eld's accounts as at Aug 26, 2012.

Gul Technologies Singapore (S$0.162) 
Greenwich Paci'c seeks delisting at $0.162 per share on Sept 20
An o'cial o'er has been made to delist Gul Technologies Singapore (Gul Tech), proving speculation 'rst reported by The Business Times on Sept 14 that a deal was in the works. Gul  Tech announced over the weekend that Greenwich Paci'c ' ultimately owned by a member of the Liem family that runs Tuan Sing Holdings  ' has submitted a formal proposal seeking Gul Tech's voluntary delisting, with an exit cash o'er of $0.162 per share. This represents a premium of approximately 38.5 per cent over Gul Tech's last transacted price of $0.117 per share on Sept 12, being the last market day on which the shares were traded prior to the holding announcement of a possible o'er which was issued by the company the following day, said Greenwich Paci'c in a press release yesterday. The company asked for the trading halt to be lifted yesterday.
Source: The Business Times

Source: AmFraser