Frasers Property (formerly: Frasers Cpt (FCL))

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Thanks for this.

Post the issuance of the perpetual and the consolidation of Australand, any idea what the gearing (net debt to asset) ratio for Frasers would be?

Is the spin off of an Australian REIT still likely? The IPO market there is restarting in earnest!


(17-09-2014, 10:41 AM)greengiraffe Wrote: Frasers Centrepoint Limited issuing $500m perpetual securities (non callable for 5years) at indicative low 5% to tap long term funds. Better than Hotel Prop when first issued around 6% few years ago. Should reduce risks of outright rights issues which I highly doubted in the first place

Initial Yield guidance at cost Low 5% area
Expected Issue Size SGD 500mio
Books Open (Deal is significantly anchored)
Denomination SGD 250k x 250k
Timing Today’s Business
Risk Rating 4C
Indicative LV 60% (Subject to Credit confirmation)
Comments - Listed on SGX with a market capitalisation of SGD4.9billion as of Sept 14

- Among the top residential property developers in Singapore, with over 12,000 homes built to date and 12 projects currently under development. The group registered strong pre-sales with unrecognised revenue of S$2.7 billion (as at 30 Jun 2014) in Singapore and overseas provide earnings visibility.

- The group is one of the largest retail mall owners and/or operators in Singapore, with NLA of around 3 million sq ft across 13 retail malls in Singapore, and one each in China and Australia and over 5.5 million sq ft across 12 office and business space properties.

- The group's hospitality arm also has scalable operation with over 8,600 serviced apartments in more than 30 cities, well-recognised hospitality brands with quality assets in prime locations.

- 9M FY13/14 revenue surged 58% y-o-y to S$1,708 million. 9M FY13/14 attributable profit (before fair value change and exceptional items) increased 62% y-o-y to S$346 million. As at 30 Jun 2014, group's asset stood at S$11,834 million.

Bond Structure: Non-callable 5 years, coupon reset in Year 5 (5yr SOR + initial Spread), 100bps step up in Year 10

At 5% yield, we feel its fair value at best comparing to the existing FCL 19s and similar perps.


Issuer: FCL Treasury Pte. Ltd.
Guarantor: Frasers Centrepoint Limited
Issue: SGD Subordinated Perpetual Securities
Ratings: Unrated
Format: Regulation S only and S274/275 of SFA, SG; Issuance off S$3 Billion Multicurrency Debt Issuance Programme
Issue Size: Benchmark
Tenor: Perpetual NC5
Ranking: Subordinated; Senior only to Issuer's ordinary shares
Call Option: [ ] 2019 & at every distribution date thereafter at par
Distribution: Fixed. Reset in Year 5 based on prevailing SGD 5Y SOR plus the Initial Spread & every 5 years thereafter
Step up: 100bps in Year 10
Distribution Payment: Semi-annually in arrear, actual/365 (fixed)
Distribution Deferral: At issuer's discretion. Any deferred Distributions are cumulative and on a compounding basis
Dividend Pusher: Yes, with 6 month look back period
Dividend stopper: Yes
Change of Control: Securities may be redeemed in whole, but not in part, at par upon Change of Control, otherwise Distribution steps up by 100bps
Other Redemption: At par under taxation reasons, accounting reasons, tax deductibility reasons, minimal outstanding amount reasons
Listing: SGX-ST
Details: SGD250K/Multicurrency Debt Issuance Programme/Singapore Law/CDP
Joint Global
Coordinators: DBS Bank Ltd. and Maybank Kim Eng
Joint Bookrunners: DBS Bank Ltd., Maybank Kim Eng, Standard Chartered Bank and UOB
B&D: DBS Bank Ltd.
Timing: This week's business, as early as today

Comparables:

Ccy Issuer Cpn Mty Nxt Call Offer YTM Offer YTNC
SGD FCL TREASURY PTE LTD 3.7 04/05/19 3.28
SGD HOTEL PROPERTIES LTD 6.125 05/04/17 7.05 4.68
SGD GLL IHT PTE LTD 4.7 05/27/16 6.08 4.68


Overview:
FCL is an established international real estate company, domiciled in Singapore. It has core businesses property development, investment and management of commercial property, hospitality and property trusts, spanning Singapore, Malaysia, Australia, China, New Zealand, Thailand, Vietnam, the United Kingdom and the Middle East.

As of 31 Aug 2014, FCL is 88% owned by TCC Group controlled by Mr. Charoen Sirivadhanabhakdi, which are demonstrative of their support to FCL by granting the latter a ROFR over any opportunity to develop, manage or invest in TCC Group’s real estate assets outside of Thailand. There is minimal conflict of interest between FCL and the TCC Group, with the latter having businesses in other industries. FCL was listed on SGX-ST in 9 Jan 2014, and as of 15 Sep 2014, it has a market capitalization of S$4.9bn (US$3.9bn equivalent).

Source DBS Credit Teaser


(14-09-2014, 12:10 PM)toiletsiao Wrote:
(13-09-2014, 06:47 PM)greengiraffe Wrote: http://cms3.todayir.com.sg/html/client/f...717_en.pdf

UPDATE AND INCREASE IN PROGRAMME LIMIT
OF S$1,000,000,000 MULTICURRENCY MEDIUM TERM NOTE PROGRAMME
TO S$3,000,000,000 MULTICURRENCY DEBT ISSUANCE PROGRAMME
Frasers Centrepoint Limited ("FCL") wishes to announce that the S$1,000,000,000 multicurrency medium term note programme (the "Programme") established on 21 March 2012 by its wholly-owned subsidiary, FCL Treasury Pte. Ltd. ("FCLT"), and guaranteed by it, has been updated to:
(a) allow FCLT to issue, in addition to notes (the "Notes") in bearer form, (i) Notes in registered form and (ii) perpetual securities in registered and/or bearer form (the "Perpetual Securities" and, together with the Notes, the "Securities") under the Programme; and
(b) increase the maximum aggregate principal amount of Securities that may be issued under the Programme from S$1,000,000,000 to S$3,000,000,000.
In connection with the foregoing, the Programme has been renamed as the "S$3,000,000,000 Multicurrency Debt Issuance Programme". DBS Bank Ltd. ("DBS") is the arranger and dealer for the Programme.
FCLT (and FCL in its capacity as guarantor) have, inter alia, (1) entered into

hopefully this removes the uncertainty of a rights issue or share placement for the acquisition of ALZ
Reply
FCL perpetuals closed with a demand of S$3.5bn.

Final yield cut off is typical Charoen style 4.88%.

At the moment, the upper limit on the issue remains at S$600m. However, given the red hot demand and FCL's need for long term funding, an upward revision on the issue cannot be ruled out and future re-taps remain possible.

With conservative investors confident enough to write blank cheques for Godfather Charoen, one should just eliminate the rights issue concerns and focus on the master strokes that Charoen will be delivering on FCL.

Vested
GG
Reply
Just 1 day soak in so much funds??? Singaporean investors so rich???

Perpetuals priced at <5%??? Not sure if investors know yield can be deferred (but likely will not as it will affect FCL reputation).

> FCL perpetuals closed with a demand of S$3.5bn.
> Final yield cut off is typical Charoen style 4.88%

Shareholders will get the best deal...
Reply
http://phx.corporate-ir.net/External.Fil...lwZT0z&t=1

FCL currently owns 98.32% of ALZ. Based on the last announcement, there is no mention of their intention to completely buyout the minorities. ALZ continued to trade on ASX with substantially reduced liquidity.

http://phx.corporate-ir.net/External.Fil...lwZT0z&t=1

This is the last letter from the ALZ board on their stance for FCL's offer and clearly with FCL above 90%, it has the rights for compulsory acquisitions.

So far, FCL has been silent on the matter but with AFR speculating last weekend that FCL may retain ALZ's residential landbank and separately float the quality recurrent income Industrial and Office, aka investment property portfolio, the listing status of the present ALZ may well be useful pending a comprehensive review.

Charoen has done it with F&N before and may well be on track to repeat a similar trick with ALZ pending the speculated moves.

Vested
GG
Reply
All virtual money as many high net worth have leverage facilities with their private bank and banks are more than willing to finance them since such investments are collateralised...

Given that MAS is actively looking to enable retail access to this bubbly market, we are potentially sitting on a Singapore style junk bond crisis...

GG

(17-09-2014, 08:28 PM)Contrarian Wrote: Just 1 day soak in so much funds??? Singaporean investors so rich???

Perpetuals priced at <5%??? Not sure if investors know yield can be deferred (but likely will not as it will affect FCL reputation).

> FCL perpetuals closed with a demand of S$3.5bn.
> Final yield cut off is typical Charoen style 4.88%

Shareholders will get the best deal...
Reply
> All virtual money as many high net worth have leverage facilities with their private bank and banks are more than willing to finance
> them since such investments are collateralised..

Wah... borrow money using property as collaterals? Have a $4M condo borrow $500,000?

> Given that MAS is actively looking to enable retail access to this bubbly market, we are potentially sitting on a Singapore style junk
> bond crisis...

So the buyers or the private banks shareholders will suffer if buyers default...
Reply
No. The HNWs borrow against the bonds they are buying. The bonds are pledged to get the cheap financings... and The HNWs comfortably pocket the carry yield.
Reply
Final confirmation S$600m priced at 4.88%

http://infopub.sgx.com/FileOpen/Pricing_...eID=315150

Towkay subscribed $250m

http://infopub.sgx.com/FileOpen/IPT_Anno...eID=315151
Reply
Wah towkay got so much cash? Or he leverage again??? Haha...
Reply
(18-09-2014, 08:10 AM)greengiraffe Wrote: Final confirmation S$600m priced at 4.88%

http://infopub.sgx.com/FileOpen/Pricing_...eID=315150

Towkay subscribed $250m

http://infopub.sgx.com/FileOpen/IPT_Anno...eID=315151

It is an enjoyable and educational, by monitoring Towkay moves...Big Grin

(not vested)
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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