Sime Darby to in­ject prop­er­ties worth RM1.12b into Saizen REIT

The Sun (Malaysia) - - SUNBIZ -

PETALING JAYA: Sime Darby Bhd is in­ject­ing 20 in­dus­trial prop­er­ties into the Saizen Real Es­tate In­vest­ment Trust (REIT) for A$355.8 mil­lion (RM1.12 bil­lion) as part of a re­verse takeover by Sime Darby Prop­erty Sin­ga­pore Ltd (SDPSL) of the REIT.

Sime Darby told Bursa Malaysia an im­ple­men­ta­tion agree­ment was signed with Ja­pan Res­i­den­tial As­set Man­ager (in its ca­pac­ity as man­ager of Saizen REIT) and Per­pet­ual Cor­po­rate Trust Ltd (in its ca­pac­ity as trustee of Sime REIT Aus­tralia) yes­ter­day.

Un­der the deal, Saizen REIT will pay for the prop­er­ties through A$282. 58 mil­lion (RM888.9 mil­lion) re­ceiv­ables from the is­suance and al­lot­ment of New Saizen REIT Units at an is­sue price of S$0.03604 per Unit and A$73.22 mil­lion (RM230.34 mil­lion) cash pro­ceeds from ex­ter­nal bank fi­nanc­ing.

Fol­low­ing the com­ple­tion of the deal SDPSL is ex­pected to hold no more than than 25% of the en­larged Saizen REIT’s to­tal Units in is­sue.

The prop­er­ties are un­der the group’s in­di­rect wholly owned sub­sidiaries SDEIPL Hast­ings Deer­ing (Aus­tralia) Ltd (HDAL) and Austchrome Pty Ltd lo­cated in Queens­land and the North­ern Ter­ri­tory in Aus­tralia.

The prop­er­ties will be mas­ter leased back to HDAL.

Un­der the terms of the leases over the prop­er­ties the weighted av­er­age lease ex­piry prop­er­ties is ap­prox­i­mately 16.7 years (based on gross rental in­come), and all of the leases will in­clude an­nual rental es­ca­la­tions of 1.50% in the first three years and 2.75% there­after.

The leases will also be backed by a cor­po­rate guar­an­tee from Sime Darby East­ern Ltd and a let­ter of sup­port from Sime Darby In­dus­trial Hold­ings Sdn Bhd.

Saizen REIT in­tends to hold the prop­er­ties through a sub-trust of Sime REIT Aus­tralia, a wholly owned head Aus­tralian trust which is in­tended to qual­ify as a man­aged in­vest­ment trust in Aus­tralia.

The par­ties have un­til Jan 31, 2017 to sat­isfy the con­di­tions.

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