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Hotel Properties Proposes Issuance of Singapore-dollar-denominated Perpetual Capital Securities

Hotel Properties Limited Thursday announced the appointment of DBS Bank Ltd and Standard Chartered Bank as joint lead managers and bookrunners to consider an issuance of Singapore-dollar-denominated perpetual capital securities.

It said that subject to market conditions, the proposed transaction is expected to be launched following investor meetings in Singapore.

Hotel Properties Limited closed Thursday at S$1.940.


Starhill Global REIT Gets Notice of Intention to Exercise Option for Lease Renewal

Starhill Global Real Estate Investment Trust (Starhill Global REIT) Thursday announced that it has received a written notice from Toshin Development Singapore Pte Ltd of its intention to exercise the option to renew the term of the lease between HSBC Institutional Trust Services (Singapore) Limited, as trustee of Starhill Global REIT, and Toshin for a further term of 12 years commencing 8 June 2013 (the “option period”).

Under the Toshin lease, Toshin is the master tenant occupying the retail areas from basement two to level four of the Ngee Ann City property. Starhill Global REIT’s stake in Ngee Ann City comprises four strata lots representing 27.23 per cent of the total share value of strata lots in Ngee Ann City at 391 / 391B Orchard Road, Singapore. The Toshin lease accounted for 18.8 per cent of the gross rent of Starhill Global REIT’s portfolio in December 2011.

There is no further option to renew the Toshin lease upon expiry of the option period.

The Toshin lease provides for the parties to agree on the renewal rent for the option period, failing which the renewal rent shall be the average of three market rental values of the premises as determined by three separate licensed valuers in accordance with the Toshin lease.

However, if such average prevailing market rental value is less than the rent payable immediately prior to the commencement of the option period, the renewal rent shall be the annual rent then payable, Starhill said.

The Toshin lease also provides for a review of the rental rate every three years during the option period, and the existing provisions of the Toshin lease regarding rent review will continue to apply.

Starhill Global Real Estate Investment Trust closed Thursday at S$0.640.


Navis Capital’s Takeover Offer for Adampak Turns Unconditional

In a filing with the Singapore Exchange on Thursday, private equity firm Navis Capital Partners said its voluntary conditional cash offer for Mainboard-listed Adampak Limited has become unconditional.

“As at 5 pm on April 18, Navis has received valid acceptances of the offer amounting to an aggregate of approximately 134.724 million shares, representing approximately 51.10 per cent of the total number of issued shares in Adampak. As such, the condition to the offer has been fulfilled and the offer is declared unconditional in all respects,” the Navis statement said.

The offer remains open for acceptance until 29 May 2012 at 5:30 pm or at such later date(s) as may be announced from time to time, it added.

In addition, Navis acquired an aggregate of 3.019 million shares on April 18, representing approximately 1.15 per cent of the total number of issued shares, in the open market.

“Navis intends to grow Adampak through geographical and service line expansions, and invest further in organic expansion of operations or through acquisitions,” Jean-Christophe Marti, a partner at Navis in Singapore, said.

On April 16, Navis despatched the offer document to shareholders for acceptance. Navis is offering S$0.420 for each share of Adampak, valuing the company at about S$110.7 million. The offer price represents an approximately 22-per cent premium over Adampak’s last traded price of S$0.345 on March 29, being the last full day of trading prior to the offer announcement.

When compared over a 12-month period preceding the offer announcement date, the cash offer price represents a 50.5-per cent premium over the volume weighted average price per share of S$0.279.

Navis said it has no intention to revise its offer price, but that it reserves the right to do so in a competitive situation.

It added that it does not intend to lift any trading suspension of Adampak shares in the event that less than 10 per cent of Adampak shares (excluding any shares held by Adampak as treasury shares) is held in public hands.

Navis said it plans to make Adampak its wholly-owned subsidiary and does not intend to preserve the listing status of Adampak.

Adampak Limited closed Thursday at S$0.420.


Frasers Commercial Trust Announces Distributable Income of S$11.2 million for 2QFY2012

Frasers Commercial Trust (FCOT) Thursday announced a distributable income of S$11.2 million for the second quarter ending 31 March 2012 (2QFY2012) and a distribution per unit (DPU) of S$0.032423 for the first half of FY2012, up 13.2 per cent from S$0.028639 a year ago.

Low Chee Wah, Chief Executive Officer of Frasers Centrepoint Asset Management (Commercial) Ltd, the manager of FCOT, said: “The robust results and DPU growth achieved were principally driven by good asset performance and lower interest expenses as a result of the partial prepayment and early refinancing of the AUD loan. We are delighted that Central Park in Perth continued to register strong performance due to positive rental reversion as a result of higher rents achieved. In addition, FCOT received its share of profits from the master lessee of China Square Central for the calendar year 2011 due to higher underlying income which was above the master lease rent.”

“FCOT completed the acquisition of the balance 50-per cent interest in Caroline Chisholm Centre on 13 April 2012 and gained full ownership of a high-quality building at a 12.6-per cent discount to valuation. The additional income from this property will be recorded from next quarter onwards and will contribute to the future growth of the portfolio,” he added.

For 2QFY2012, gross revenue grew 4.2 per cent to S$30.9 million from S$29.6 million a year ago. Net property income recorded a 3.8-per cent year-on-year growth to S$24.8 million.

FCOT said total distributable income grew by 7.7 per cent to S$15.9 million compared with last year as a result of better portfolio performance and lower interest expenses.

The income available for distribution to Series A Convertible Perpetual Preferred Units (CPPU) holders was S$4.7 million, while the distributable income for the quarter was S$11.2 million, up by 10.9 per cent. Correspondingly, DPU for the quarter increased by 8.1 per cent from a year earlier to S$0.0174.

FCOT said a total distribution of S$0.032423 per unit and S$0.02750 per CPPU for the first half of FY2012 will be paid on 30 May 2012. This represents an annualised yield of 7.4 per cent based on the last closing price of the units of S$0.880 on 18 April 2012. The distribution books closure date for both the units and CPPUs is 27 April 2012.

Looking ahead, Low said: “The rents of our Singapore properties continue to be competitive and the occupancies remain healthy with positive growth from the Australian properties providing a good uplift to the income of the portfolio. Collectively, they provide a strong platform and underpin the growth of FCOT.”

Frasers Commercial Trust closed Thursday at S$0.875. Subscribes for Additional 668,000 Shares in Wholly-owned Subsidiary Holdings Ltd Thursday announced that it has subscribed for an additional 668,000 shares at S$1.00 per share in the issued and paid-up capital of a wholly-owned subsidiary, S.H. Tours Pte Ltd, for a total consideration of S$668,000.

Following the subscription, S.H. Tours will remain a wholly-owned subsidiary of the company. said the subscription was to increase the working capital of S.H. Tours and to meet licensing requirements.

It added that the subscription was funded through internal resources and is not expected to have any material impact on its consolidated net tangible assets and earnings per share for the current financial year ending 30 September 2012. Holdings Ltd closed Thursday at S$0.350.


PEC Completes Acquisition of Additional 25,000 Ordinary Shares in Associated Company

PEC Ltd Thursday announced that it has completed the acquisition of an additional 25,000 ordinary shares in the capital of its associated company, Plant Electrical Instrumentation Pte Ltd (PEI), from Mr Lim Fung Suan for a cash consideration of S$134,320.

Pursuant to the acquisition, the company has increased its shareholding interest in PEI from 44 per cent to 49 per cent.

A joint venture with Yokogawa Engineering Asia Pte Ltd, PEI is engaged in engineering and instrumentation services and the installation of electrical and scientific instruments.

PEC said the acquisition was funded by internal sources and is not expected to have any material impact on its net tangible assets or earnings per share for the financial year ending 30 June 2012.

PEC Ltd closed Thursday at S$0.720.