12-10-2010, 06:23 AM
(This post was last modified: 05-06-2014, 08:51 PM by CityFarmer.)
Another grand financial engineered wholesale asset disposal deal (similar to what CWT did a few years back).....
http://info.sgx.com/webcoranncatth.nsf/V...90042A172/$file/Announcement_Proposed_Sale_And_Leaseback_Of_Properties.pdf?openelement [Sale & Leaseback Announcement]
http://info.sgx.com/webcoranncatth.nsf/V...90042FFE1/$file/Freightlinks_NewsRelease.pdf?openelement [Press Release]
Under the deal, the underlying fully-developed logistics property assets will remain the same, except that the assets will be transferred into a new Reit as its initiating assets, at 'inflated prices' not acheiveable in a normal trade sale, justified and backed by a likely higher-than-normal leaseback arrangement. As consideration, Freight Link will get a bundle of units in the new Reit and some cash. To pay for these assets, the new Reit will have to raise new capital via an IPO and also take on a considerable amount of new debts. Depending on the market response to the IPO, the Reit would pursue further growth by raising additional new capital via placement of even more new units and taking on more debts, to buy into additional matured property assets at likely higher-than-normal market prices, under similar purchase-and-leaseback deals.
Who and how many investors will buy into such a situation in exchange for promised consistent dividend returns crafted by smart financial engineers?
http://info.sgx.com/webcoranncatth.nsf/V...90042A172/$file/Announcement_Proposed_Sale_And_Leaseback_Of_Properties.pdf?openelement [Sale & Leaseback Announcement]
http://info.sgx.com/webcoranncatth.nsf/V...90042FFE1/$file/Freightlinks_NewsRelease.pdf?openelement [Press Release]
Under the deal, the underlying fully-developed logistics property assets will remain the same, except that the assets will be transferred into a new Reit as its initiating assets, at 'inflated prices' not acheiveable in a normal trade sale, justified and backed by a likely higher-than-normal leaseback arrangement. As consideration, Freight Link will get a bundle of units in the new Reit and some cash. To pay for these assets, the new Reit will have to raise new capital via an IPO and also take on a considerable amount of new debts. Depending on the market response to the IPO, the Reit would pursue further growth by raising additional new capital via placement of even more new units and taking on more debts, to buy into additional matured property assets at likely higher-than-normal market prices, under similar purchase-and-leaseback deals.
Who and how many investors will buy into such a situation in exchange for promised consistent dividend returns crafted by smart financial engineers?