Taking a Look Into CapitaMall Trust Acquisition of Westgate

Last month, CapitaMall Trust has announced the proposed acquisition of the remaining 70.0% of the units in IMT which holds Westgate from CMA Singapore Investments (4) Pte. Ltd. and CL JM Pte. Ltd for $789.6 million. Including acquisition related expenses, it was estimated to cost $805.5 million.

Westgate is one shopping mall where I vaguely remembered a small section of its ceiling collapsed due to heavy rain in the year 2014.

If you didn’t know, CapitaMall Trust currently owns 30.0% of units in Infinity Mall Trust (IMT) which holds Westgate. Investors are negative about the proposed acquisition as they felt CapitaMall Trust had overpaid for the acquisition. Moody, a credit rating agency had also downgraded CapitaMall Trust rating from “stable” to “negative”. Moody explained the downgrade in rating is because the acquisition will likely increase CapitaMall Trust’s debt leverage, which in turn will reduce the headroom within the A2 ratings. Read More

My Personal Analysis Of Frasers Commercial Trust

Frasers Commercial Trust (“FCOT”) currently makes up 2% of my stock portfolio. I cannot remember how long I have held this REIT but I have bought it in my early days of investing. I have been hesitating to increase my holdings of FCOT because China Square Central and Alexandra Technopark are both undergoing Asset Enhancement Initiative (“AEI”). Another reason was Hewlett Packard vacating Alexandra Technopark, which has a pretty big impact on its rental income since HP used to be one of its top ten tenants. With AEI at Alexandra Technopark completing in 2H2018 and China Square Central in 2H2019, it is probably time for me to take a look at the current performance of Frasers Commercial Trust (“FCOT”). Read More

Frasers Logistics and Industrial Trust Acquires NSW Property and QLD Property

Following the recent divestment of two Australian properties (80 Hartley Street and Lot 102 Coghlan Road), the manager of Frasers Logistics and Industrial Trust had completed the acquisition of two prime properties in Australia for A$62.6 Million. This is no surprise and as per their previous announcement that they will use the proceeds from the divestment to fund potential acquisition opportunities.

The manager has mentioned that the acquisition is expected to improve the distribution per unit. Stock analysts have estimated a debt headroom of A$190m before reaching the 40% gearing ratio. Thus, I do not foresee any further acquisition in the near term.

Given the above news which I deemed positive, I have slightly increased my holdings in Frasers Logistics and Industrial Trust which I shall update at the end of this month.

Below are the details of the two new Australian properties that have been acquired. Read More