Frasers Logistics & Commercial Trust offloads Brisbane cold storage facility for A$152m and other APAC REIT news

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SGX-listed Frasers Logistics & Commercial Trust (BUOU) has sold its remaining half-stake in a cold storage facility in Brisbane to German real estate investment manager DWS for A$152.5m, representing a 12.2% premium over the property’s book value. 

The S-REIT also bought a prime logistics asset in Melbourne and a business park in the UK’s Thames Valley for S$89.9m.

“The divestment is in-line with our active asset management strategy, enabling FLCT to unlock value from the sale property at an attractive premium, with the divestment proceeds providing FLCT with greater financial flexibility,” said Robert Wallace, CEO of the REIT manager.

“The new properties are a strategic fit with FLCT’s portfolio – being modern and high-quality properties with excellent connectivity and strong tenants. It also further entrenches FLCT in two attractive markets – Melbourne’s south east industrial suburb and the UK’s Thames Valley business park market, both of which have demonstrated resilience notwithstanding the COVID-19 pandemic.” (Read more)

Shares in Frasers Logistics & Commercial Trust finished trading 2.22% lower at S$1.32.

Index Change (%) Value at close
S&P/ASX 200 A-REIT -0.70 1,208.70
S&P/ASX 200 -0.03 5,926.10
FTSE ST REITS -1.27 831.83
STI -1.78 2,484.91
Tokyo Stock Exchange REIT -0.22 1,660.75
Nikkei 225 +2.24 22,195.38
Hang Seng REIT -0.22 5,435.03
Hang Seng -0.56 24,458.13

Hong Kong: Hui Xian REIT records 27% fall in net property income in 1H 2020

Hui Xian REIT (87001) reported a 27.9% fall year-on-year in net property income to RMB 751m during the first half of 2020, according to its latest earnings. 

The diversified trust, which owns the Beijing Oriental Plaza and the Chongqing Metropolitan Oriental Plaza, recorded a loss after tax of RMB 1.6bn in 1H compared to the RMB 426m profit during the same period last year. 

Distribution per unit declined 83% YOY to RMB 0.0212 for the six months to end-June 2020, while the value of its portfolio fell to RMB 30.8bn from RMB 32.9bn six months earlier. 

“With the easing of COVID-19 in China, our business is expected to see some improvement and the pandemic impact on the second half of 2020 will be less severe,” the company said. 

“The pace of recovery of Hui Xian REIT’s business would vary across different sectors and would depend greatly on the duration of the pandemic and the degree of relaxation of lockdown measures.” (Read more)

Hui Xian REIT shares closed 3.13% higher at RMB 1.98.

Australia: Rural Funds bags QLD sugar cane portfolio for A$81m

ASX-listed Rural Funds Group (RFF) has agreed to acquire 5,409 ha of sugar cane farms in Queensland  from MSF Sugar for A$81.1m, with plans to convert the farms into macadamia orchards.

The deal, which includes 8,060 ML of water entitlements, will see RFF progressively convert the farms into 2,200 ha of macadamia orchards. 

RFF said they were in discussions with several potential lessees. 

The Australian diversified agricultural trust said a quarter of the MSF farms were leased at rates in line with RFF’s other natural resource predominant assets. (Read more)

Rural Funds Group stocks finished trading down 0.49% at A$2.03.

Japan: Star Asia receives A- credit rating

Japan Credit Rating Agency has assigned an A- long-term issuer credit rating to Star Asia Investment Corp. (3468) following its merger with Sakura Sogo REIT.

The diversified J-REIT said the new credit rating would help with sourcing new funding, expanding its investor base, and diversifying its financial methods. 

The credit rating agency said the merger would increase Star Asia’s flexibility in management and progress diversification in property and tenants, increasing the stability of portfolio cash flow.

“Considering it is necessary to pay close attention to continuity of management after the merger including measures for aging properties and improvement of terms and condition of debts (making debt period longer and diversification of repayment dates), while valuing the good track records of portfolio management and continued sound financial management, JCR assigned a rating of A- long-term issuer rating to SAR with stable outlook,” the rating agency said. (Read more) 

Star Asia shares closed 3.30% lower at JPY 41,050.