LMIRT has announced the proposed acquisitions of two retail properties, Pejaten Village, located in Jakarta, and Binjai Supermall, located in Binjai, North Sumatra. The purchase consideration for Pejaten Village is IDR748.0b (~S$96.0m). The purchase consideration for Binjai Supermall is IDR237.5b (~S$30.5m). Apart from the financing the acquisitions from the proceeds raised from the issuance of S$250m worth of notes in early Jul, LMIRT will need to raise additional funds. These two proposed acquisitions come shortly after the announcement of the proposed acquisitions of four properties on 10 Oct. The completion of the acquisitions of Palembang Square Extension and KJI took place on 15 Oct, half a month earlier than what we expected. Adjusting our model, we raise our fair value from S$0.45 to S$0.47, and maintain our HOLD rating on LMIRT.
Two more properties
LMIRT has announced the proposed acquisitions of two retail properties, Pejaten Village, located in Jakarta, and Binjai Supermall, located in Binjai, North Sumatra. As at 30 Jun, the occupancy rates are 95.2% and 91.4% respectively. The purchase consideration for Pejaten Village is IDR748.0b (~S$96.0m), a 12.6% discount to the average of its independent valuations. The purchase consideration for Binjai Supermall is IDR237.5b (~S$30.5m), 5.2% less than the average of its independent valuations. Binjai Supermall is the only mall in Binjai City, which serves as a transit point between Medan, the largest city in Sumatra, and Aceh, where both have high population densities. These two transactions would be interested party transactions.
Slew of acquisitions
The two proposed acquisitions come shortly after the announcement of the proposed acquisitions of four properties – Palembang Square, Palembang Square Extension, Tamini Square and Kramat Jati Indah Plaza (KJI) – on 10 Oct. The completion of the acquisitions of Palembang Square Extension and KJI took place on 15 Oct, half a month earlier than what we expected. We continue to expect that the acquisition of Palembang Square and Tamini Square will be completed on 1 Nov 2012. Including the aggregate purchase consideration of ~S$180.7m and the acquisition fee payable to the manager, as well as professional fees and other expenses, the total acquisition cost for these four properties is expected to be S$188.1m.
Adjusting our model
Apart from financing the acquisitions from the proceeds raised from the issuance of S$250m worth of notes in early Jul, LMIRT will need to raise additional funds. We assume ~S$60m in debt fundraising on 1 Jan 2013 and assume that the proposed acquisitions of Pejaten Village and Binjai Supermall will be completed on the same day. We had previously assumed that any new acquisitions would be completed on 1 Apr 2013.
Raise FV, maintain HOLD
Adjusting our model, we raise our fair value from S$0.45 to S$0.47, and maintain our HOLD rating on LMIRT.
LMIRT has announced the proposed acquisitions of two retail properties, Pejaten Village, located in Jakarta, and Binjai Supermall, located in Binjai, North Sumatra. As at 30 Jun, the occupancy rates are 95.2% and 91.4% respectively. The purchase consideration for Pejaten Village is IDR748.0b (~S$96.0m), a 12.6% discount to the average of its independent valuations. The purchase consideration for Binjai Supermall is IDR237.5b (~S$30.5m), 5.2% less than the average of its independent valuations. Binjai Supermall is the only mall in Binjai City, which serves as a transit point between Medan, the largest city in Sumatra, and Aceh, where both have high population densities. These two transactions would be interested party transactions.
Slew of acquisitions
The two proposed acquisitions come shortly after the announcement of the proposed acquisitions of four properties – Palembang Square, Palembang Square Extension, Tamini Square and Kramat Jati Indah Plaza (KJI) – on 10 Oct. The completion of the acquisitions of Palembang Square Extension and KJI took place on 15 Oct, half a month earlier than what we expected. We continue to expect that the acquisition of Palembang Square and Tamini Square will be completed on 1 Nov 2012. Including the aggregate purchase consideration of ~S$180.7m and the acquisition fee payable to the manager, as well as professional fees and other expenses, the total acquisition cost for these four properties is expected to be S$188.1m.
Adjusting our model
Apart from financing the acquisitions from the proceeds raised from the issuance of S$250m worth of notes in early Jul, LMIRT will need to raise additional funds. We assume ~S$60m in debt fundraising on 1 Jan 2013 and assume that the proposed acquisitions of Pejaten Village and Binjai Supermall will be completed on the same day. We had previously assumed that any new acquisitions would be completed on 1 Apr 2013.
Raise FV, maintain HOLD
Adjusting our model, we raise our fair value from S$0.45 to S$0.47, and maintain our HOLD rating on LMIRT.
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