Company Briefs: Mapletree Logistics Trust

Mapletree Logistics Trust

Mapletree Logistics Trust has sold 20 Tampines Street 92 for $20 million, its manager said yesterday.

Capital released from the sale will be used to fund investments while any divestment gain will be distributed to unit-holders after taking into consideration all relevant costs, expenses and tax provision, it added.

The deal is expected to have minimal impact on the trust's net asset value and net property income for the 2015/2016 financial year.

Following the sale, the trust's portfolio stands at 118 properties, with a total book value of about $4.97 billion.

Marco Polo Marine

Marco Polo Marine's subsidiary, Marco Polo Drilling (I), has initiated a contractual dispute-resolution process against PPL Shipyard, the company said yesterday.

It had terminated a US$214.3 million (S$303 million) rig construction contract with PPL Shipyard as the latter failed to comply with certain material contractual obligations, it said.

"MP Drilling has taken into account various factors, including cracks found on all three legs of the new rig during two rounds of tests, notwithstanding repair works carried out by PPL after the first round of tests."

It is seeking, amongst others, a refund from PPL of the initial amount of 10 per cent of the contract price, or about US$21.4 million.

Noble Group

Commodity giant Noble said in a statement yesterday that it is committed to raising capital through options such as asset disposals and strategic partnerships.

The statement was released in response to Standard & Poor's (S&P) announcement overnight that it has put Noble's credit rating on credit watch with negative implications.

S&P said Noble's liquidity position has deteriorated due to a reduction in its adjusted readily marketable inventory and committed undrawn credit facilities.

If Noble does not improve its liquidity or financial leverage in the next three months, S&P will downgrade Noble's BBB- rating one notch to junk status.

But Noble said the company is confident that it will keep its investment grade rating as it sets its funding plans in motion.

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A version of this article appeared in the print edition of The Straits Times on November 25, 2015, with the headline Company Briefs: Mapletree Logistics Trust. Subscribe