Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Headquartered in Singapore, SooChow CSSD Capital Markets (Asia) is an investment bank focusing on emerging growth companies across Asia, providing a full suite of investment banking services, including corporate finance, mergers and acquisitions advisory, equity capital markets, institutional equities sales and trading and equities research.

Research from SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

Laos Real estate / Thematic (Sector/Industry)

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/cdl-hospitality-trusts" target="_blank" data-smartkarma-citation="entities:936" rel="noopener">CDL Hospitality Trusts (CDREIT SP)</a> enters UK's build-to-rent sector with S$136m investment; 5.1% stabilized pro-forma NPI yield</h3><ul><li>CDREIT has entered into a land-purchase agreement and a development-funding agreement to invest in a build-to-rent (BTR) residential property in Manchester, United Kingdom, for a purchase consideration of GBP73.3m (S$136m). This is in line with CDREIT's strategy to strengthen its rental income base and boost its portfolio diversification. This transaction is a forward-funding arrangement, which enables CDREIT to invest in a residential BTR property at a fixed-cost, with cash flows managed over the duration of development. The pro forma stabilised NPI yield is estimated to be 5.1%, which translates to a 2.2% accretion on the FY20 DPU on a pro forma basis. CDREIT has also acquired land and buildings on the south east side of Longacre Street in Ancoats in Manchester, from BTR developer and operator Packaged Living for a consideration of GBP9.5m</li><li>In connection with the land acquisition and under a development-funding agreement, Packaged Living will redevelop the land into a residential BTR building to be known as The Castings. This will cost GBP63.8m, of which GBP58.2m will be paid out periodically over the development period; the remaining GBP5.6m will be paid shortly after project completion, expected in May24. An independent valuer has valued The Castings on a forward-funding basis at GBP76.1m, which is higher than the purchase consideration of GBP73.3m. Including the estimated furnishing and fit-out expenses of GBP3.1m, the total project cost is estimated to be GBP76.4m. The total transaction cost, including all other transaction expenses and professional fees, is GBP78.9m.</li></ul>

SingaporeCDL Hospitality Trusts (CDREIT SP) enters UK's build-to-rent sector with S$136m investment; 5.1% stabilized pro-forma NPI yieldCDREIT has entered into a land-purchase agreement and a development-funding agreement to invest in a build-to-rent (BTR) residential property in Manchester, United Kingdom, for a purchase consideration of GBP73.3m (S$136m). This is in line with CDREIT's strategy to strengthen its rental income base and boost its portfolio diversification. This transaction is a forward-funding arrangement, which enables CDREIT to invest in a residential BTR property at a fixed-cost, with cash flows managed over the duration of development. The pro forma stabilised NPI yield is estimated to be 5.1%, which translates to a 2.2% accretion on the FY20 DPU on a pro forma basis. CDREIT has also acquired land and buildings on the south east side of Longacre Street in Ancoats in Manchester, from BTR developer and operator Packaged Living for a consideration of GBP9.5mIn connection with the land acquisition and under a development-funding agreement, Packaged Living will redevelop the land into a residential BTR building to be known as The Castings. This will cost GBP63.8m, of which GBP58.2m will be paid out periodically over the development period; the remaining GBP5.6m will be paid shortly after project completion, expected in May24. An independent valuer has valued The Castings on a forward-funding basis at GBP76.1m, which is higher than the purchase consideration of GBP73.3m. Including the estimated furnishing and fit-out expenses of GBP3.1m, the total project cost is estimated to be GBP76.4m. The total transaction cost, including all other transaction expenses and professional fees, is GBP78.9m.

ASEAN Builder's Scoop (1Sep21)