Frasers Centrepoint strikes S$197m deal to grow its PGIM retail fund stake and other APAC REIT news

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In Singapore, Frasers Centrepoint Trust (J69U) announced plans to buy an additional 12% interest in the PGIM Real Estate AsiaRetail fund for S$197.2m, taking its stake to 36.89%.

“The ARF portfolio of suburban retail malls shares similar characteristics to FCT’s malls, which focuses on essential spending and F&B trades as well as their locations in populous residential areas and close proximity to transportation nodes,” Richard Ng, CEO of the REIT’s manager, said in a statement after the market had closed.

The REIT said the acquisition was accretive to its DPU “based on the assumption that the acquisition had been effected at the beginning of FY2019”, while pro forma gearing sat at 36.2% post-deal.

Mapletree Industrial Trust (ME8U) raised S$410m from its oversubscribed private placement, selling more than 146.4m shares at S$2.80 per unit, the company announced.

The company said the capital raising, which had originally planned to collect no less than S$350m, had attracted new and existing institutional investors.

The Straits Times Index gained 0.61% to 2,589.91, but the FTSE ST Real Estate Investment Trusts index dipped 0.24% to 816.82. 

The biggest S-REIT moves of the day were Parkway Life REIT (C2PU), which fell 2.62% to S$3.34, and Keppel Pacific Oak US REIT (CMOU), which rose 2.94% to S$0.70.

Australia: Arena raises A$24.9m 

The S&P/ASX 200 A-REIT index slipped 0.47% to 1,209.40, while the S&P/ASX 200 index increased 1.43% to 5,897.90.

Arena REIT (ARF) raised A$24.9m through its security purchase plan, selling 11.3m new shares at A$2.21 per unit, the company said. 

The REIT said the capital raising was oversubscribed, and the issue price was equal to the price paid by institutional investors in its earlier institutional placement. Arena REIT shares closed 3.10% lower at A$2.19.

Australian Unity Office Fund (AOF) shares finished trading down 4.57% at A$2.09 in one of the steepest falls of the day, while Elanor Retail Property Fund (ERF) increased 5.81% to A$0.91.

Japan: Mori Trust secures green building certificates

The Tokyo Stock Exchange REIT index rose 0.41% to 1,666.83, as the Nikkei 225 Index grew 1.33% to 22,288.14.

Mori Trust Sogo REIT Inc. (8961) received DBJ Green Building certification for its ON office building in Tokyo and its Midosuji MTR office building in Osaka, according to an announcement. Mori Trust shares finished trading flat at JPY 132,700. 

The biggest J-REIT swings were Invincible Investment Corp. (8963) stocks, which fell 4.67% to JPY 27,790, and Nippon Prologis REIT Inc. (3283), which rose 7.01% to JPY 328,000.

Hong Kong: Regal REIT shares up 1.7% 

The Hang Seng REIT index edged 0.28% higher to 5,588.38, and the Hang Seng index rose 0.52% to 24,427.19.

The biggest moves in Hong Kong’s REIT market were Regal REIT (1881) which grew 1.67% to HK$1.22, and Yuexiu REIT (405) which declined 0.84% to HK$3.53.

Malaysia: Sunway buys RM450m office building

In Kuala Lumpur, Sunway REIT (5176) will buy the Pinnacle Sunway, a 24-storey office building in Sunway City, for RM450m, the company said.

The company also plans to raise RM710m through a private placement at an issue price yet to be determined. Shares in Sunway REIT jumped 2.53% to RM1.62.