FORTUNE REIT
ENTERS
SINGAPORE
----------------
Acquisition of Stars of Kovan Property
(7 August 2022)
First foray into overseas market
16 Neighborhood retail properties in HK
2
New Territories | 10 | 3 | |||||
Tai Wai | 1 | ||||||
8 | |||||||
15 | 16 | 6 | 11 | ||||
Tsuen Wan West | |||||||
12 | Kowloon | Diamond Hill | |||||
Mei Foo | Kowloon Tong | 7 | 4 | ||||
14 | |||||||
5 Hung Hom | 13 | ||||||
9 | |||||||
Lantau | |||||||
Island | Hong Kong | ||||||
New addition in SG as
a strategic fit with existing portfolio
17
Stars of Kovan Property │ 2
Property overview
Stars of Kovan Property
36 Shop Units and Public Carpark
S$88 M | 7.4% | ||
Consideration | Discount to valuation | ||
Stars of Kovan Property | |||
Address | 988 Upper Serangoon Road, | -------------------------------------------- | |
Singapore | |||
Completion | 2019 | ||
Land Tenure | 99 year from Feb 2015 | ||
GRA | 22,638 sf | ||
Occupancy | 100% | ||
Carparking space | 80 nos. |
Stars of Kovan Property │ 3
Key rationales and benefits to Unitholders
Portfolio | Singapore is a | Maintained Fortune | ||||||
diversification | suitable | REIT's risk profile | ||||||
to drive | destination for | for retaining | ||||||
sustainable | our 1st overseas | exposure in | ||||||
growth | investment | neighborhood | ||||||
retail | ||||||||
High occupancy with | ARA's strong | |
stable income | presence in | |
contribution from non- | Singapore | |
discretionary trades | renders local | |
support | ||
Stars of Kovan Property │ 4
Financial impact
Consideration | S$88M (~HK$501M) |
Appraised Value | S$95M (~HK$541M) |
Net Property Yield | 3.4% |
Financing | 100% debt |
Proforma Gearing | 23.4% |
Expected Completion | DPU |
Oct 2022 | Accretive |
Debt Maturity Profile - Post Acquisition
(HK$M) | 3,500 | New 5Y ESG | ||||||||||||
Loan to finance | ||||||||||||||
2,500 | the Acquisition | |||||||||||||
1,500 | 528 | |||||||||||||
1,200 | ||||||||||||||
0 | 230 | |||||||||||||
2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Un- | ||||||||
committed | ||||||||||||||
- | 15.9% | - | 26.4% | 37.0% | 18.3% | 2.4% | ||||||||
Debt expiry profile is based on the amount of loan drawn. S$93M is expected to draw from the new ESG loan upon completion of the acquisition.
SGD loan as natural currency hedge Financial position remains prudent
Note: Based on the exchange rate 1 SGD = 5.69 HKD quoted on Bloomberg on 1 Aug 2022
Stars of Kovan Property │ 5
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Fortune Real Estate Investment Trust published this content on 07 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2022 10:33:08 UTC.