Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Soilbuild Business Space REIT / Event-Driven

<div>
<p>On the <a href="https://links.sgx.com/FileOpen/SBREIT_Holding%20announcement.ashx?App=Announcement&amp;FileID=630548" target="_blank" rel="noopener">4 September</a>, <a href="https://www.smartkarma.com/entities/soilbuild-business-space-reit" target="_blank" data-smartkarma-citation="entities:13446:1" rel="noopener">Soilbuild Business Space REIT (SBREIT SP)</a> announced the Lim family (led by executive chairman Lim Chap Huat (LCH)), which holds 30.3% in the REIT, had entered into a non-binding term sheet in relation to a possible transaction. This was shortly followed by a <a href="https://links.sgx.com/FileOpen/SB%20REIT%20-%20Joint%20Announcement.ashx?App=Announcement&amp;FileID=642238" target="_blank" rel="noopener">proposal</a> from LCH and Blackstone Real Estate to take the company private at S$0.55/unit,  a 34.5%, 34.8%, 53.2%, and 29.1% premium over the one-month, three-month, six-month, and 12-month VWAP.</p>
<p>The Scheme consideration was reduced by the <a href="https://links.sgx.com/FileOpen/SB%20REIT%204QFY2020%20BCD.ashx?App=Announcement&amp;FileID=645706" target="_blank" rel="noopener">4Q20 distribution</a>, resulting in the adjusted Scheme consideration of S$0.53806 per SB Unit.</p>
<p>The Scheme Document has now been <a href="https://links.sgx.com/FileOpen/SB%20REIT%20-%20Scheme%20Document.ashx?App=Announcement&amp;FileID=648474" target="_blank" rel="noopener">despatched</a>. The EGM will be held on the <a href="https://links.sgx.com/FileOpen/SB%20REIT%20-%20Notice%20of%20Trust%20Scheme%20Meeting.ashx?App=Announcement&amp;FileID=648471" target="_blank" rel="noopener">11 March</a>. Provided the Scheme is approved - and there is every indication it will be - settlement is expected around the 12 March. The IFA has given its approval.</p>
</div>
<div>More below the fold.</div>


On the 4 September, Soilbuild Business Space REIT (SBREIT SP) announced the Lim family (led by executive chairman Lim Chap Huat (LCH)), which holds 30.3% in the REIT, had entered into a non-binding term sheet in relation to a possible transaction. This was shortly followed by a proposal from LCH and Blackstone Real Estate to take the company private at S$0.55/unit,  a 34.5%, 34.8%, 53.2%, and 29.1% premium over the one-month, three-month, six-month, and 12-month VWAP.
The Scheme consideration was reduced by the 4Q20 distribution, resulting in the adjusted Scheme consideration of S$0.53806 per SB Unit.
The Scheme Document has now been despatched. The EGM will be held on the 11 March. Provided the Scheme is approved - and there is every indication it will be - settlement is expected around the 12 March. The IFA has given its approval.

More below the fold.

Soilbuild REIT: Scheme Doc Out. EGM Convened

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<p><a href="https://www.smartkarma.com/entities/soilbuild-business-space-reit" target="_blank" data-smartkarma-citation="entities:13446:1" rel="noopener">Soilbuild Business Space REIT (SBREIT SP)</a> has announced a privatisation offer from Mr Lim Chap Huat (executive Chairman) and <a href="https://www.smartkarma.com/entities/blackstone-group-inc" target="_blank" data-smartkarma-citation="entities:27166:1" rel="noopener">Blackstone Group LP (BX US)</a> at S$0.55 cash per unit. The privatisation price is a premium of 8% to the last close price of S$0.51 per unit (8 December prior to the trading halt) and a 27.9% to the unaffected price of S$0.430 per unit (31 August 2020 prior to the announcement of a possible transaction involving Mr Lim Chap Huat’s stake). The effective date for the trust scheme meeting is targeted for the end of March 2021 with delisting in early April 2021. </p><div class="content-highlight"><p>SB REIT faces challenging market conditions due to the fallout from the COVID-19 pandemic. A combination of high DPU yield and limited debt headroom is a constraint to driving growth through DPU accretive acquisitions. Over the past few years, SB REIT’s sponsor has received several privatisation proposals and the current offer is the highest offer price received to date. Overall, while the bid is not a knockout bid particularly for long-term unitholders, we think that a reasonable offer (offer values SB REIT broadly in line with its latest adjusted NAV) makes it likely that the offer succeeds. </p></div>

Soilbuild Business Space REIT (SBREIT SP) has announced a privatisation offer from Mr Lim Chap Huat (executive Chairman) and Blackstone Group LP (BX US) at S$0.55 cash per unit. The privatisation price is a premium of 8% to the last close price of S$0.51 per unit (8 December prior to the trading halt) and a 27.9% to the unaffected price of S$0.430 per unit (31 August 2020 prior to the announcement of a possible transaction involving Mr Lim Chap Huat’s stake). The effective date for the trust scheme meeting is targeted for the end of March 2021 with delisting in early April 2021. SB REIT faces challenging market conditions due to the fallout from the COVID-19 pandemic. A combination of high DPU yield and limited debt headroom is a constraint to driving growth through DPU accretive acquisitions. Over the past few years, SB REIT’s sponsor has received several privatisation proposals and the current offer is the highest offer price received to date. Overall, while the bid is not a knockout bid particularly for long-term unitholders, we think that a reasonable offer (offer values SB REIT broadly in line with its latest adjusted NAV) makes it likely that the offer succeeds. 

Soilbuild Business Space REIT’s Privatisation Bid

<p>Back on the <a href="https://links.sgx.com/FileOpen/SBREIT_Holding%20announcement.ashx?App=Announcement&amp;FileID=630548" target="_blank" rel="noopener">4 September</a>, <a href="https://www.smartkarma.com/entities/soilbuild-business-space-reit" target="_blank" data-smartkarma-citation="entities:13446:1" rel="noopener">Soilbuild Business Space REIT (SBREIT SP)</a> announced the Lim family (led by executive chairman Lim Chap Huat (LCH)), which holds 30.3% in the REIT, had entered into a non-binding term sheet in relation to a possible transaction.</p>
<p>Soilbuild has now <a href="https://links.sgx.com/FileOpen/SB%20REIT%20-%20Joint%20Announcement.ashx?App=Announcement&amp;FileID=642238" target="_blank" rel="noopener">announced</a> a proposal from LCH and Blackstone Real Estate to take the company private at S$0.55/unit,  a 34.5%, 34.8%, 53.2%, and 29.1% premium over the one-month, three-month, six-month, and 12-month VWAP.</p>
<p>The Offer price implies a price to adjusted NAV of 0.98x-1.00x, above Soilbuild's historical averages. </p>
<p>In tandem with the Scheme, Soilbuild has also entered into an agreement with Blackstone affiliates to dispose of its Australian assets. The disposal is inter-conditional with the Scheme.</p>
<p>Should all go to plan - and pricing looks fair - Soilbuild is expected to be delisted in early April. </p>
<p>More below the fold.</p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/178/244/original/image_73570893321607923186481.png?1607923186" class="editor-image img-responsive" data-smartkarma-image-id="178244"></figure>

Back on the 4 September, Soilbuild Business Space REIT (SBREIT SP) announced the Lim family (led by executive chairman Lim Chap Huat (LCH)), which holds 30.3% in the REIT, had entered into a non-binding term sheet in relation to a possible transaction.
Soilbuild has now announced a proposal from LCH and Blackstone Real Estate to take the company private at S$0.55/unit,  a 34.5%, 34.8%, 53.2%, and 29.1% premium over the one-month, three-month, six-month, and 12-month VWAP.
The Offer price implies a price to adjusted NAV of 0.98x-1.00x, above Soilbuild's historical averages. 
In tandem with the Scheme, Soilbuild has also entered into an agreement with Blackstone affiliates to dispose of its Australian assets. The disposal is inter-conditional with the Scheme.
Should all go to plan - and pricing looks fair - Soilbuild is expected to be delisted in early April. 
More below the fold.


Soilbuild REIT: Offer From Blackstone/Lim Family

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<p>Today morning <a href="https://www.smartkarma.com/entities/esr-reit" target="_blank" data-smartkarma-citation="entities:10934:1" rel="noopener">ESR-REIT (EREIT SP)</a> and <a href="https://www.smartkarma.com/entities/sabana-shariah-compliant-reit" target="_blank" data-smartkarma-citation="entities:911:1" rel="noopener">Sabana Shari’ah Compliant REIT (SSREIT SP)</a> announced that their respective manager had agreed on a proposed merger by way of a trust scheme of arrangement.</p><p>Each Sabana shareholder will receive 94 consideration units for every 100 Sabana units held.</p><p>My fellow insight provider, <a href="https://www.smartkarma.com/profiles/david-blennerhassett" target="_blank" data-smartkarma-citation="accounts:840" rel="noopener">David Blennerhassett</a>, has already covered the details of the merger. Hence, in this insight, I'll touch upon some of the fundamental aspects.</p>

Today morning ESR-REIT (EREIT SP) and Sabana Shari’ah Compliant REIT (SSREIT SP) announced that their respective manager had agreed on a proposed merger by way of a trust scheme of arrangement.Each Sabana shareholder will receive 94 consideration units for every 100 Sabana units held.My fellow insight provider, David Blennerhassett, has already covered the details of the merger. Hence, in this insight, I'll touch upon some of the fundamental aspects.

ESR-REIT/Sabana Merger - Buying Well Below Book

Equity Bottom-Up

Capitaland Integrated Commercial Trust / Equity Bottom-Up

<div>
<p>The Ministry of Finance (MOF), the Inland Revenue Authority of Singapore (IRAS), and the Monetary Authority of Singapore (MAS) yesterday announced a set of new measures to provide REITs with greater flexibility to manage their cash flows.</p>
<p>In this insight, I'll talk about the likely implications of the same.</p>
<p>Links to my previous insights on SREITs are below:</p>
<ul>
<li>In <a href="https://www.smartkarma.com/insights/singapore-reits-what-s-been-cooking-this-year" target="_blank" rel="noopener">Singapore REITs - What’s Been Cooking This Year</a> I spoke about how the REITs have performed this year and touched upon some of the factors that have been driving them.</li>
<li>In my follow-up insight, <a href="https://www.smartkarma.com/insights/trade-ideas-for-sgreits-retail-reits-share-price-has-been-more-resilient-than-it-should-be" target="_blank" rel="noopener">Trade Ideas for SGREITs - Retail REITs Share Price Has Been More Resilient than It Should Be,</a> I spoke about the factors that have been impacting retail REITs.</li>
<li>In <a href="https://www.smartkarma.com/insights/trade-ideas-sg-office-reits-this-time-it-s-different" target="_blank" rel="noopener">Trade Ideas SG Office REITs - This Time It’s Different</a> I spoke about how the office REITs might fare better.</li>
<li>In <a href="https://www.smartkarma.com/insights/trade-ideas-sg-industrial-reits-bigger-names-have-been-holding-up-a-little-too-well" target="_blank" rel="noopener">Trade Ideas SG Industrial REITs - Bigger Names Have Been Holding up a Little Too Well</a> I spoke about how the larger industrial REITs appear to be a little too expensive.</li>
</ul>
</div>


The Ministry of Finance (MOF), the Inland Revenue Authority of Singapore (IRAS), and the Monetary Authority of Singapore (MAS) yesterday announced a set of new measures to provide REITs with greater flexibility to manage their cash flows.
In this insight, I'll talk about the likely implications of the same.
Links to my previous insights on SREITs are below:

In Singapore REITs - What’s Been Cooking This Year I spoke about how the REITs have performed this year and touched upon some of the factors that have been driving them.
In my follow-up insight, Trade Ideas for SGREITs - Retail REITs Share Price Has Been More Resilient than It Should Be, I spoke about the factors that have been impacting retail REITs.
In Trade Ideas SG Office REITs - This Time It’s Different I spoke about how the office REITs might fare better.
In Trade Ideas SG Industrial REITs - Bigger Names Have Been Holding up a Little Too Well I spoke about how the larger industrial REITs appear to be a little too expensive.



Singapore REITs - Get Out of Jail Free Card, for the Tenants

Singapore

Soilbuild Business Space REIT is a real estate investment trust. The Trust makes investmets in a portfolio of income-producing real estate used primarily for business space purposes in Singapore as well as real estate-related assets.

Soilbuild Business Space REIT (SBREIT SP)

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Soilbuild Business Space REIT (SBREIT SP)

Soilbuild REIT: Scheme Doc Out. EGM Convened

Trading tight at a gross/annualised return of 0.6%/4.0%, assuming 12 April completion. This is a done deal - buy on any dips.

David Blennerhassett

Soilbuild Business Space REIT’s Privatisation Bid

SB REIT announced a privatisation offer from Mr Lim Chap Huat and Blackstone at S$0.55 cash per unit, a 27.9% to the unaffected price of S$0.430...

Arun George

Soilbuild REIT: Offer From Blackstone/Lim Family

Trading at a gross/annualised return of 3.8%/12.6%, assuming early April completion. That looks fair - buy here or a spread below. This Offer has...

David Blennerhassett

ESR-REIT/Sabana Merger - Buying Well Below Book

Today morning ESR-REIT (EREIT SP) and Sabana Shari’ah Compliant REIT (SSREIT SP) announced that their respective manager had agreed on a proposed...

Sumeet Singh

Singapore REITs - Get Out of Jail Free Card, for the Tenants

The Ministry of Finance (MOF), the Inland Revenue Authority of Singapore (IRAS), and the Monetary Authority of Singapore (MAS) yesterday announced...

Sumeet Singh

Price Gauge

52-week Range

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