ISSUER: Viva iTrust MTN Pte. Ltd.
GUARANTOR: The Trust Company (Asia) Limited (in its capacity as trustee of Viva Industrial Real Estate Investment Trust)
STATUS: Direct, unconditional, unsubordinated and unsecured Notes
EXPECTED ISSUE RATING: BBB-
FORMAT: Reg S, S274 & 275 of SFA, issuance off S$500 Million Multicurrency Medium Term Note Programme
ISSUE SIZE: $100 Million
TENOR: 4 years
INITAL PRICE GUIDANCE: 4.15-4.2%
UOP: In accordance with the Programme
PAYMENT: Semi-annual, actual/365 (fixed)
– Viva SGD 4yrs announced with strong anchor orders
– Initial price guidance: 4.15-4.2%
– Acquisition announcement : To acquire Jackson Square (Toa Payoh) and Jackon Design Hub (Tai Seng St) for SGD 112.8 Mil http://www.theedgesingapore.com/the-daily-edge/business/49929-viva-industrial-reit-to-acquire-jackson-square-and-jackson-design-hub-for-1128-mil.html
All the resources you'll ever need as an investor
We've gone ahead and done the work. Compiled here are all the resources you'll need as an investor.
Ascendas India Trust 3.8% 08/27/19 100.25 3.74%
AACI REIT 3.8% 05/21/19 100.00 3.80%
Cambridge Reit 4.1% 04/29/20 100.00 4.10%
This is the first time I am looking at this business trust (not REIT) with a market cap of SGD 487.8 Mil listed just in Nov 2013 and majority owned (64.38%) by Tong Jinquan, another Chinese real estate mogul billionaire. http://www.nextinsight.net/index.php/story-archive-mainmenu-60/921-2013-chinahk/7637-tong-jinquan-prc-property-baron-behind-viva-industrial
I found that Viva Trust has debt/assets of 38.1% and supposedly pays a dividend of 8.5%.
As for its ratings, Viva Industrial Real Estate Investment Trust is rated BB+ by S&P. I am not sure why it is called a “real estate investement trust” because it is a business trust structure.
And I am also unsure why the bond issued by Viva iTrust MTN Pte. Ltd, a subsidiary, is rated higher at BBB-.
Let’s take it at face value.
Their assets are all in Singapore. I am surprised at their returns and dividends which is amongst the highest in S-Reit and trusts space.
It looks like a good deal to me.
If we pull out all the Reit-type bond issues this year, we have the list below.
1. Suntec Reit Baa2 3.35% 02/2020 6 years
2. Capitamall Trust A2 3.08% 02/2021 7 years
3. Ascendas Reit A3 2.5% 05/2019 5 years
4. Central China Reit Ba3/BB- 6.5% 05/2017 3 years5. CMT A2 3.48% 08/2024 10 years
6. CCT Baa1 2.98% 02/2021 6.5 years
7. MAGIC Baa1 3.2% 09/2021 7 years
8. Starhill Global Reit BBB+ 3.5% 02/2021 7 years
9. AACI Reit unrated 3.8% 05/2019 5 years
10. Rickmers Trust unrated 8.45% 05/2017 3 years
11. Cambridge Reit unrated 4.1% 04/2020 6 years
12. Croesus Retail Trust unrated 4.6% 01/2017 3 years
I say they come close to Croesus in terms of size. Croesus just declared dividends of 11.1% !!!
At 4.5% for 4 years for a newcomer name, I think it is a fair price given that interest rates have spiked higher and 4 year interest rate is at 1.58% today. 1.58% was where the 5 year interest rates were earlier this year.
This article was published on www.tradehaven.net, and is republished with permission.