Charter Hall Office Reit and Singapore GIC

There are a number news between yesterday and today, reporting on the Charter Hall Office Reit (in Australia) and Singapore GIC property deals which was already in the news back in early Dec 2011.

Singapore Reit companies are likely to increase their "coverage" abroad as well in search of better returns on rental income for unitholders.

previous posting : -  Singapore GIC on property spree in Australia?

Singapore GIC on property spree in Australia?

source : The Australian newspaper





DIRECTORS of $1.7 billion Australian office landlord Charter Hall Office REIT have reached a conditional agreement to privatise it after a consortium of global funds again raised their offer.

Charter Hall Office REIT directors confirmed last night that the Macquarie Group-advised consortium comprising the Government of Singapore Investment Corporation and the Public Sector Pension Investment Board of Canada had agreed to offer unitholders $2.47 per unit plus a 2c per unit special dividend.

The offer for the Australian business equated to $1.23bn.

It excludes proceeds of the $US1.7bn ($1.66bn) sale of the US portfolio, which is expected to be finalised by March when unitholders will vote on the consortium's takeover proposal.

The consortium made its initial approach for the company in August and has twice sweetened its bid after the trust's directors suggested they would not support earlier offers.

However, last night, one Charter Hall Office REIT shareholder said he would not back the deal, as it reflected a 4.2 per cent discount to the net tangible asset backing of $2.60 for the Australian business.

Major shareholders include activist hedge funds led by US-based Orange Capital.

The hedge fund tried to oust Charter Hall as the trust's manager this year in protest against perceived conflicts of interest on corporate governance issues and management fees. Charter Hall Office REIT's shares have been in a trading halt since Friday at $3.42.

The trust's 19 Australian office properties were last valued on the books at $1.9bn.

Among its best assets are 50 per cent stakes in three Sydney buildings: 1 Martin Place, 2 Park St and 2 Market St.

The consortium will buy all units of the trust, excluding the 15 per cent held by headstock Charter Hall group, which will manage the entity as an unlisted wholesale fund should the deal proceed.

As part of the proposal, unitholders would be paid out a 7.2c per unit dividend.


Previous post :-

http://sgchest.blogspot.com/2011/12/mapletreeind-me8u-rights-issue-soon.html

MapletreeInd (ME8U) rights issue soon?

There were recent reports that Mapletree Industrial (and Singapore GIC, too?)  is eyeing a portfolio of Australia building properties.

If successful, it will be Mapletree Industrial's first cash call since listed in October 2010.

All suitors have signed a confidentiality agreement to access documents relating to the assets, which are expected to go on the market after Christmas.


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source : The Australian newspaper

Fourteen parties, including the cashed-up Singapore-based Mapletree Industrial Trust, have expressed interest in $100 million worth of industrial assets owned by the former MacarthurCook Industrial Trust.

All groups have signed a confidentiality agreement to access documents relating to the assets, which are expected to go on the market after Christmas.

US-based Commonwealth REIT privatised the MacarthurCook trust when it bought the business last year.

Industry sources said other offshore groups interested in the assets could include Aviva, which has plans for an Australian logistics fund, and the Government of Singapore Investment Corporation, which has been active in the market in the past two years. Boutique investment bank Investec also is said to be interested on behalf a South African investor.

Local investors could include 360 Capital Group, which still hopes to float an industrial vehicle, and perhaps Dexus Property Group, which has signalled it intends to increase its industrial portfolio.

One source suggested that, based on early indications of strong demand, the portfolio could fetch up to $120m.

Commonwealth REIT Australia's chief investment officer John Mannix confirmed plans to sell the portfolio of 10 buildings in NSW, Tasmania, Western Australia and Victoria.

Mr Mannix said Commonwealth REIT had repositioned the assets after it acquired MacarthurCook, lifting average occupancy rates from about 80 per cent to more than 90 per cent.

"The buildings are leased to blue-chip tenants like Coles and Woolworths and General Electric," he said.

"We've decided to sell the industrial properties and to use the proceeds to invest in office properties to be consistent with the strategy in the US."

Sources say Commonwealth REIT could be a buyer of the Stockland-owned Exchange Plaza at The Esplanade in Perth. The 31-storey building with views over the Swan River went on the market a week ago, according to a source. The building was independently valued in June at $150m.

"We have come to understand that in Australia we have to look for off-market deals," Mr Mannix said. "In the US, most transactions are listed with agents and done on market."

Mr Mannix was the president and chief investment officer of the US-listed Commonwealth REIT before coming to Australia to guide the expansion of its Australian investment.

The business has bought a Sydney office tower from Investa Property Group at 320 Pitt Street for $193m. The plan is to expand Commonwealth REIT to a billion-dollar platform, and then list it on the ASX or in the US.

"We came to Australia because of the tremendous opportunities here as a result of its linkage with China and the resources boom and growth of this region," said Mr Mannix.

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