Singapore deals roundup: HPL, PLife REIT, PSA

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HPL sells 49% stake in Pinedale Holdings

Singapore listed Hotel Properties Ltd (HPL) said it is disposing its entire 49 per cent holdings in associate company Pinedale Holdings to General Mills Asia. The S$15 million deal also involves the shareholder’s loan made by HPL to Pinedale Holdings .

HPL’s 49 per cent interest comprises of 245,000 ordinary shares in Pinedale Holdings. General Mills Asia is an independent and unrelated party.

The sale of the Sale Shares will result in an increase in earnings per share of the HPL Group from 33.19 cents to 35.79 cents based on the audited consolidated accounts for the year ended 31 December 2013. It is not expected to have any material effect on the net tangible asset value per share of the HPL Group based on the audited consolidated accounts for the year ended 31 December 2013,” HPL said in a statement.

PLife REIT buys Japanese nursing home for S$18.9m

Parkway Life Real Estate Investment Trust (PLife REIT), the region’s largest listed healthcare trusts, said it has purchased Ocean View Shonan Arasaki in Japan for S$18.9 million.

This marks its second acquisition in Japan within weeks. Earlier this month, the trust had completed the deal to buyout Habitation Jyosui for S$39.3 million from from Ostara Japan Two TMK.

In the latest deal, PLife REIT had bought the nursing home from from Oueikikaku Kabushiki Kaisha.

“The acquisition cost will be funded via a five-year committed and unsecured JPY term loan facility, which has been put in place on 12 December 2014. The deployment of JPY funding provides a natural hedge for foreign exchange risks arising from JPY denominated assets, thereby insulating PLife REIT from JPY foreign exchange fluctuations, and enabling it to maintain a stable net asset value. Coupled with the acquisition of Habitation Jyosui, PLife REIT’s post acquisition gearing will increase to 35.1 per cent from 33.3 per cent,” the company said in a statement.

The deal is expected to be completed next month, and post this, PLife REIT’s Japan portfolio will be at S$518 million, equivalent to about 33 per cent of its total assets under management, the company added. The acquisition is expected to generate a net property yield of 6.9 per cent.

This nursing home is located the residential area of Yokosuka City, one of the major cities in the Kanagawa Prefecture.

Secured with a fresh 20-year master lease arrangement with Oueikikaku, the weighted average lease expiry by gross revenue of PLife REIT’s portfolio is expected to improve from 10.00 years to 10.08 years, the company added.

PSA-led consortium to build & operate new Jakarta container terminal

Singapore-listed PSA International has teamed up with three transportation and shipping companies to construct and operate a new container terminal at Tanjung Priok Port, Jakarta, Indonesia, the companies announced in a statement.

The other firms that are part of this joint venture include PT Pelabuhan Indonesia II, Mitsui & Co Ltd and Nippon Yusen Kabushiki Kaisha (NYK Line).

Explaining the reasoning behind the deal, the companies said that Indonesia had experienced dramatic economic growth accompanied by a rapid increase in container traffic, and Jakarta’s Tanjung Priok Port was the most important, largest port in the country, handling the majority of Indonesia’s international container traffic. To support the vibrant trade, there is an immediate need to increase the port capacity and handling capability, they added.

“The new terminal will have an annual handling capacity of approximately 1.5 million twenty foot equivalent units (TEUs) of containers, an overall berth length of 850 metres, and a 16-metre draft upon completion. This will allow the terminal to accommodate the advanced megacontainer vessels plying the oceans today,” PSA International said.

Mitsui had earlier done an equity participation in the Singapore-based port development and management company Portek International Pte Ltd in September 2011. Together, they have applied Portek International’s knowledge and expertise relating to port terminal modernisation and efficiency improvement, for the development of port terminal projects around the world, especially in emerging countries.

“By participating in the project, Mitsui expects to benefit from the growth potential of high-growth economies in Southeast Asia and to expand its involvement in logistics infrastructure projects by accumulating knowledge and expertise that can be used in the development and management of projects,” PSA said.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.