Sabana Reit
Sabana Shari'ah Compliant Industrial Real Estate Investment Trust (Sabana Reit) is selling its property at 218 Pandan Loop to X Properties for $14.8 million.
The manager yesterday said the Reit's trustee and X Properties have entered into an agreement for the proposed divestment, which is expected to be completed by the first quarter of 2017. The property has a gross floor area of about 50,374 sq ft, representing about 1.1 per cent of the trust's portfolio gross floor area.
The sale price is about 13.8 per cent higher than the property's book value of $13 million as at June 30, based on a desktop valuation performed by independent valuer Knight Frank.
Proceeds from the divestment may be used to repay the trust's outstanding borrowings, to pursue acquisition opportunities or for working capital purposes, the manager said.
ARA Asset Management
Franklin Templeton Institutional, which holds a 10.01 per cent stake in ARA Asset Management, will vote in favour of the $1.78 billion privatisation, said ARA yesterday.
ARA last month announced a privatisation bid by a consortium led by its group founder and chief executive John Lim.
The consortium, which includes Cheung Kong Property and The Straits Trading Company, is offering $1.78 in cash for each share of ARA, in a deal valuing the company at $1.775 billion.The buyout will be carried out by way of a scheme of arrangement.
If the acquisition goes through, Mr Lim's JL Investment Group will hold 19.85 per cent of ARA. Straits Trading will hold 20.95 per cent and Cheung Kong Property will hold 8 per cent.
Warburg Pincus will be the largest shareholder, with a 30.72 per cent stake, and AVIC Trust will have the second-largest stake at 20.48 per cent.
Samudera Shipping Line
Samudera Shipping Line announced yesterday that it expects to make a provision for impairment of assets for the financial year ended Dec 31. This was based on a preliminary review on the fair value and recoverable amount of the group's fleet of vessels, it said.
The group also expects to post a net loss for the fourth quarter and full year 2016, given the provision of bad debts in view of the filing of the receivership by Hanjin Shipping Co.
Samudera is due to announce its financial results on or before March 1 next year.
