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Ascendas Real Estate Investment Trust ("A-REIT") Receives Letter Of Eligibility From SGX For Mainboard Listing
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ASCENDAS REAL ESTATE INVESTMENT TRUST ("A-REIT") RECEIVES LETTER OF ELIGIBILITY FROM SGX FOR MAINBOARD LISTING | |
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Ascendas-MGM Funds Management Limited to manage the diversified A-REIT portfolio of eight properties, comprising business park (including science park), light industrial and built-to-suit properties. JPMorgan and Salomon Smith Barney appointed as joint financial advisers; DBS Bank, JPMorgan and Salomon Smith Barney appointed as joint global coordinators, bookrunners and underwriters for the initial public offering of A-REIT. Singapore, 16 October 2002 - Ascendas Land (Singapore) Pte Ltd ("Ascendas") and Australian-based Macquarie Goodman Industrial Management Pty Limited ("MGIM"), sponsors of A-REIT ("Sponsors"), today announced that Ascendas-MGM Funds Management Limited has received a Letter of Eligibility from the Singapore Exchange ("SGX") for the listing and quotation of units of A-REIT (the "Units") on the SGX-ST+. A prospectus has been lodged with the Monetary Authority of Singapore. Ascendas-MGM Funds Management Limited, jointly owned by Ascendas Investment, a related company of Ascendas (60%) and MGIM (40%) will manage the A-REIT, which will invest in a diversified portfolio of eight properties comprising business park (including science park), light industrial and built-to-suit properties. The eight properties are The Alpha, The Aries, The Capricorn, and The Gemini at the Singapore Science Park, Techplace I and II at Ang Mo Kio, Techlink at Kaki Bukit and The Honeywell Building at Changi Business Park. The properties are intended to be acquired at a discount to the aggregate appraised value of S$607.2 million by Colliers International Consultancy Valuation (Singapore) Pte Ltd as at 1 August 2002, at a discounted rate of 9.9% based on the minimum of the offering price range of S$0.83 per Unit and at a discounted rate of 5.6% based on the maximum of the offering price range of S$0.88 per Unit. These properties have a tenant base of over 300 international and local companies in the knowledge-based R&D, life sciences, IT and high-tech manufacturing sectors. The tenants include many blue-chip companies such as Bioprocessing Technology Centre, Federal Express, Honeywell, Institute of Microelectronics, Lilly Systems Biology, Teradyne and Venture Corporation. Based on the minimum of the offering price range of S$0.83 per Unit, A-REIT is forecast to provide an annualised yield of 8.5% for the five months ending 31 March 2003 and a yield of 8.7% for the financial year ending 2004*. Based on the maximum of the offering price range of S$0.88 per Unit, A-REIT expects to provide an annualised yield of 8.0% for the five months ending 31 March 2003 and a yield of 8.2% for the financial year ending 2004*.
Cornerstone investors have been secured for 80 million Units (15%) in A-REIT. These cornerstone investors have each entered into a subscription agreement with Ascendas-MGM Funds Management Limited subject to completion of the proposed IPO. Ascendas and MGIM, as the Sponsors, have each entered into a subscription agreement with Ascendas-MGM Funds Management Limited to subscribe for approximately 140.1 million Units and 52.4 million Units respectively. In aggregate, these Units to be subscribed by the Sponsors will constitute approximately 192.5 million Units (i.e. 35% of the outstanding Units immediately after the completion of the proposed IPO and before the exercise of the over-allotment option). The IPO is expected to be fully underwritten by JPMorgan, Salomon Smith Barney and DBS Bank at the IPO Price. A-REIT was declared an authorised unit trust scheme on 9 October 2002, qualifying as an investment permitted to be made by trustees and certain other persons with similar investment powers in Singapore. Investors in Singapore may use up to 35% of the Investible Savings in their CPF Ordinary Account to subscribe for Units in A-REIT as an investment. JPMorgan and Salomon Smith Barney have been appointed as joint financial advisers. DBS Bank, JPMorgan and Salomon Smith Barney have been appointed as joint global coordinators, bookrunners and underwriters for the A-REIT IPO. The Sponsors of A-REIT, Ascendas and MGIM also announced the appointment of Mr Goh Kok Huat as the Chief Executive Officer of Ascendas-MGM Funds Management Limited. Mr Goh was previously the Chief Executive Officer of Ascendas Land (Singapore) Pte Ltd, where his responsibilities included managing Ascendas' Singapore portfolio of properties, ranging from science park to high-tech and industrial park space. Ascendas and MGIM also announced the appointment of Mr Stephen Hawkins as Trust Manager. Mr Hawkins was previously the Head of Asian Funds Management of the Macquarie Goodman Group and has held funds management positions with Westfield Group and Suncorp Metway in Australia. Mr Goh said, "We are excited with the opportunity of introducing the first business and industrial space real estate investment trust in Singapore. We believe that investors in the proposed A-REIT will be attracted by the stable distributions and long-term capital gains potential of a diversified portfolio of quality business and industrial properties catering to high value-added industries." Ms Chong Siak Ching, President and Chief Executive Officer of Ascendas Pte Ltd, said, "When listed, A-REIT will be the latest milestone in Ascendas' 12-year track record in pioneering high quality, total business space solutions to high value-added industries. Beginning with the world-renowned Singapore Science Park, Ascendas has been at the forefront in providing premium quality business parks, light industrial space and built-to-suit properties to meet the needs of knowledge-based industries." Gregory Goodman, Chief Executive Officer of Macquarie Goodman Management Limited, said, "We are pleased to be involved in A-REIT and are committed to investing a substantial stake in this new vehicle. We feel that our significant expertise in the funds management arena in Australia together with Ascendas' local experience should significantly benefit A-REIT. " - End - | |
| About Ascendas-MGM Funds Management Limited | |
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A-REIT has a diversified portfolio of eight properties comprising business park (including science park), light industrial and built-to-suit properties in Singapore, valued at approximately S$607.2 million (as at 1 August 2002). These properties house a tenant base of more than 300 international and local companies operating in a range of industries and activities, including research and development, life sciences, information technology, engineering and light manufacturing. Tenants include Bioprocessing Technology Centre, Federal Express, Honeywell, Institute of Microelectronics, Lilly Systems Biology, Teradyne and Venture Corporation, just to name a few. The rental income from the tenants contributes to the stable distributions to be delivered by A-REIT. A-REIT is managed by Ascendas-MGM Funds Management Limited, a joint venture between Singapore-based Ascendas Investment Pte Ltd, a related company of Ascendas Land (Singapore) Pte Ltd, and Australian-based Macquarie Goodman Industrial Management Pty Limited. | |
| About Ascendas | |
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Ascendas has a well-established track record as a provider of total business space solutions. These solutions include the development, management and marketing of science parks, business, high-tech and industrial parks. It also bundles e-infrastructure as part of its value-added services in key markets in Asia, such as Singapore, China, India and the Philippines. Ascendas is backed by a strong team of 300 professionals across its key markets. It has a total of S$1.8 billion (based on market value as at 30 June 02) in assets and business environments spread over 1.2 million square metres. Its international clientele of some 1,000 customers include Fortune 500 corporations, multinational corporations, leading local enterprises and research organisations. Ascendas has 8 offices in the region including Singapore, China, India, the Philippines and Japan. | |
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About Macquarie Goodman Management Limited | |
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Macquarie Goodman Industrial Management Pty Limited is a wholly owned subsidiary of Macquarie Goodman Management Limited ("MGM"), Australia's leading industrial funds management and property services company. MGM is listed on the Australian Stock Exchange with a market capitalisation of approximately A$340 million (as at 31 October 2002). It is the fund and property manager of Australia's largest listed industrial property trust, Macquarie Goodman Industrial Trust, which owns a property portfolio of 58 properties valued at approximately A$1.8 billion, with 13,000 investors (as at 31 October 2002). MGM's major shareholder, Macquarie Bank Limited, has funds under management of over A$40 billion in Australia. | |
| * | All forecasts and return projections will be based on an issue price per Unit of A-REIT at its initial public offering ("IPO") of between S$0.83 and S$0.88 per Unit (the actual IPO issue price to be determined before the listing date) and on the Manager's assumptions as explained in the Prospectus. Yields mentioned will vary accordingly for investors who purchase Units in the secondary market at a market price higher or lower than the IPO issue price. The major assumptions used by the Manager are certain expected levels of property rental income and property expenses over the relevant periods, which are considered by the Manager to be appropriate and reasonable as at the date of the Prospectus. The forecast and projected financial performance of A-REIT is not guaranteed and there is no certainty that any of it can be achieved. Investors should read the prospectus for details of the forecasts and projections and consider the assumptions used and make their own assessment of the future performance of A-REIT. |
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Visit the A-REIT website at www.a-reit.com.sg for more details. Media Contact Singapore Ho Mei Peng Australia | |