Towards Financial Freedom
DBS Equity Research: Wired Daily 9 Dec 2014
Cambridge REIT - Acquires first business park property for S$28m; initial yield estimated to be c. 6.5%
Global Logistics Properties - Co-invests with GIC to acquire US$8.1bn US logistics portfolio
Cambridge REITannounced its acquisition of 16 International Business Park (16 IBP) for S$28.0m. The target property is a 3-storey purpose-built building within the International Business Park in Jurong East, one of the two most established business hubs in Singapore, serving a vibrant community of international and domestic technology companies and industrialists. The property has a GFA of 69,528 sqft with a remaining land tenure of 41.6 years (11.6 years + 30-year option). The acquisition is yield accretive, with initial yield estimated to be c. 6.5%. Gearing is estimated to approach an optimal c.35%. Maintain HOLD, target price S$0.74.
Global Logistics Properties(GLP) announced that it will coinvest with GIC (Singapore Government Investment Corporation) to acquire a US$8.1bn US logistics portfolio from Blackstone. The portfolio consists of 117m sqft of space across 36 major US submarkets. Post-acquisition, together with GIC, the group will be the 3rd largest logistics owner in the US (after Prologis and Duke Realty). GLP plans to own 55% of the syndicate (GLP Income Partners I) at the point of acquisition (1Q15) but intends to pare down to 10% or an equity value of S$330m by Aug'15 as it has received strong indicative interest from other capital partners. GLP intends to fund the initial stake through cash and short-term liabilities. Our earnings are hiked up by c.2% as we price in this acquisition. We remain positive on GLP, driven by its value creation from development projects in China and fee income business. Maintain BUY, target price of S$3.42.
Lippo Malls Indonesia Retail Trust proposes to carry out a placement of 117.65m New Units at an issue price of S$0.34 per New Unit to raise gross proceeds of approximately S$40.0m. The issue price is at 8.4% discount to the last volume weighted average price. The proceeds will be mainly used to fund the acquisition of Lippo Mall Kemang.
Spackman Entertainment Group enters into a definitive agreement to acquire majority stake in Novus Mediacorp. Novus Mediacorp is a renowned movie investor, presenter, and ancillary distributor of Korean theatrical films. Total purchase consideration of S$2.53m will be satisfied in cash and shares priced at S$0.34 per share. The Group's current lineup of productions is expected to increase to ten films, of which seven or more are aimed for release in 2015.
Hiap Hoe is selling its entire luxury condominium in Balmoral area near Orchard Road to its controlling shareholder Hiap Hoe Holdings. The latter, which owns 69.85% of Hiap Hoe, is buying all 48 units of Treasure on Balmoral for S$185m or about $1789 psf for the 103,439 sq ft strata area development.
ISOTeam announced plans to raise S$1.4m through a proposed ordinary share placement exercise that will further strengthen its financial position to execute its growth plans. The Group plans to place 2.8m new shares to Nippon Paint at S$0.50 per share at an aggregate consideration of S$1.4m. Upon completion of the proposed placement and the proposed acquisition of Industrial Contracts Marketing, Nippon Paint's stake in ISOTeam will increase from 2.63% to approximately 5.93% of the enlarged share capital of the Group.
US market fell amid continued selling of energy producers as crude oil sank. The yen rallied and Treasuries advanced. WTI oil for January delivery fell 4.2% to US$63.05pbl while Brent crude saw a similar percentage move, falling to US$66.19pbl. McDonald's Corp shares fell after the fast-food operator's same-store sales trailed analysts' estimates.
Source: DBS
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
