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