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REITs Monthly Roundup (March 2022): Malaysia and Singapore

We have a brand new REITs Monthly Roundup on our blog to keep you updated on the latest happenings in the REITs industry. If you want to catch up with the most important REITs news in March 2022, but don’t have much time on your hands, this will be the perfect piece

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Enjoy your weekend!

Malaysia REITs

1. Capitaland Malaysia Mall Trust (“CLMT”) issued a notice to its shareholders providing options to reinvest its cash distribution in new units of CLMT. Under this scheme, unitholders shall have the following options in respect of a reinvestment option under the Distribution Reinvestment Plan:

  • Reinvesting all the distribution share in new Units at an Issue Price to be determined on the Price-Fixing Date;
  • Elect to reinvest part of the distribution share in new units and to receive the balance in cash
  • Not Participate and receive the entire distribution (both Electable Portion and Non-Electable Portion) in cash.

Read More: CLMT announcement dated 4th March 2022

2. Axis REIT completed 2 new acquisitions. The first acquisition which is located in Kulai is a parcel of industrial land with a net lettable area of 59,956 square feet. This acquisition will be leased to HQPack Sdn Bhd commencing from 5 November 2021 for a period of 10 years.

The second acquisition which is is located in Pasir Gudang with a net lettable area of 276,000 square feet will be leased Venice Tulip Sdn Bhd commencing 3 years from the date of the tenancy agreement.

Read More: Axis REIT announcement dated 7th March and 8th March 2022

Singapore REITS

1. AIMS Apac REIT extended its target date for the receipt of approval of JTC Corporation for the Proposed Acquisition of property located at 315 Alexandra Road to 27 April 2022.

2. Proposed sale of Hyatt Place Chicago Itasca by ARA US Hospitality Trust for a consideration of US$7.75 million. This is a six-story hotel with 126 rooms, situated on freehold land located at a suburb of Chicago. The rationale behind the sale is for greater portfolio optimization given that this is one of the oldest assets in the portfolio.

3. Ascott Residence Trust (ART) to invest approximately S$125.0 million to acquire four rental housing properties and its first student accommodation property in Japan. These transactions are expected to be completed in between Q1 2022 and Q2 2023.

4. ESR REIT completed its divestment of 45 Changi South Avenue 2 for a sale consideration of S$11.1 million. Following the divestment, ESR-REIT’s diversified portfolio consists of 54 properties located across Singapore.

5. Capitaland Integrated Commercial Trust completed its acquisition of 66 Goulburn Street and 100 Arthur Street in Sydney with a further proposal to acquire 70% interest in 79 Robinson Road.

In addition to that, CICT completed its sale of JCube on 10th March 2022.

6. Far East Hospitality Trust completed its divestment of Central Square for consideration of S$313.2 million. This represents a gain of approximately 70.8% over the original purchase consideration.

7. First REIT announced that the National Land Office of the Republic of Indonesia (Badan Pertanahan Nasional) has extended one of the HGB titles for Siloam Hospitals Surabaya covering a land area of 684 sqm for another twenty (20) years to 7 September 2043.

Apart from that, First REIT has also completed its acquisition of 12 nursing homes in Japan. Post-acquisition, this would expand its portfolio by 30.9% to S$1.3 million.

8. Frasers Hospitality Trust has completed the acquisition of the freehold reversionary interest of Sofitel Sydney Wentworth, located at 61-101 Phillip Street, Sydney, Australia. As previously disclosed in the Divestment Announcement, they currently hold the leasehold interest of a remaining term of 69 years in the Hotel and is undertaking the Reversionary Interest Acquisition to amalgamate it with the Leasehold Interest in order to facilitate the sale of the Amalgamated Freehold Interest to an unrelated third-party acquirer.

9. Frasers Logistics and Commercial Trust completed its divestment of Cross Street Exchange

10. Lendlease Global Commercial REIT issued 551,723,000 new units at an issue price of S$0.7250 per New Unit in connection with the Private Placement. With the issuance of the new units, the total number of Units in issue is 1,743,369,376 units as at 23rd March 2022.

What are your thoughts on our March 20202 Monthly REITs Round Up? If you are just getting started, feel free to read more of our REIT Guide and REIT Analysis. You can also read more about what REITs are if you are new to REITs.

Chee Yang

Chee Yang is an investor and founder of REIT Pulse. Started out his career in both assurance and M&A, he is now in corporate and business development of a rising tech company. Being an active REIT investor, Chee Yang launch REIT Pulse to connect with seasoned investors and similarly help others learn more about REITs.

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