THE following companies saw new developments that may affect trading of their securities on Monday (Sep 25):
Frasers Centrepoint Trust (FCT): HSBC Institutional Trust Services (Singapore), the trustee of Frasers Centrepoint Trust (FCT), has entered into a sales and purchase agreement to divest 143.9 million units in Malaysia’s Hektar Real Estate Investment Trust (Hektar Reit) for RM128.1 million (S$37.4 million) to unrelated third parties, the trust’s manager said on Friday (Sep 22).
Hektar Reit is a Malaysia retail-focused Reit listed on the mainboard of Malaysia’s stock exchange, Bursa Malaysia.
FCT currently holds 30.7 per cent of the total number of Hektar Reit units in issue. This represents 154.5 million units of a total of 498.8 million units.
Capitaland Ascott Trust (CLAS): CapitaLand Ascott Trust has completed the divestment of four of its properties in regional France for EUR44.4 million ($64.7 million).
The four properties, Citadines Croisette Cannes, Citadines Prado Chanot Marseille, Citadines Castellane Marseille and Citadines City Centre Lille, were divested to an unrelated third party.
The sum received represents 63% above the properties’ book value as at Dec 31, 2022, with the REIT receiving net proceeds of around EUR34.1 million. The exit yield, based on CLAS’s FY2022 ended Dec 31, 2022 ebitda, is about 4% with CLAS receiving a net gain of some EUR1.2 million.
Following the completion of the divestment, CLAS has 12 properties in France that are predominantly located in Paris. Of the 12 properties, La Clef Tour Eiffel Paris and Citadines Les Halles Paris are undergoing asset enhancement initiatives (AEIs). Both properties will remain open during their AEIs, which include the refurbishment of guest rooms and general public areas.
Sheng Siong: Supermarket operator Sheng Siong announced that its subsidiary Sheng Siong (China) Supermarket had on Sept 11 entered into a lease agreement with Kunming Aegean Shopping Center for a retail space of approximately 83,624 sq ft at Yunnan Aegean Shopping Park.
The new store is expected to be operational before the end of 2Q2024.
This will bring the group’s store count to 69 in Singapore and six in China. This new store is not expected to have a significant impact on the group’s financial performance for FY2023 ended Dec 31.
LHN Logistics: HLA Container Services (HLACS) has received a letter of demand from the lawyer representing logistics provider Pacific GSSA in relation to a final award of arbitration, the group said on Friday (Sep 22).
HLACS is a subsidiary of LHN Logistics.
In the letter of demand, Pacific GSSA is demanding payment of the awarded amount, costs of the proceedings and disbursement, as well as its share of tribunal fees and expenses amounting to S$993,853.
Geo Energy: Geo Energy Resources has received US$220 million in term loan facilities from Bank Mandiri to help fund acquisitions so that it can double down on the coal industry.
The plans to secure the facilities, which will mature in five years, were first announced back in July 26 after a binding term sheet was signed.
The loan is pegged to the Secured Overnight Financing Rate plus 3.25%, which works out to around 8.5% now based on current rates.
