Starhill Global ( former McQ Prime )

[tonylim]

From The proforma and distibution yield ( under 7.1 )
The yield accretion is around 0.5 cent per unit after this acquisition.

[peter]

With the 2 acquisitions in KL completed and yield accretive, price will likely to continue to inch upwards.

[tonylim]

Got it from CNA forum. Potential DPU should be around there.

4.34 was profoma DPU based on 2009 DPU before conversion of CPU, excluding David Jones contribution. If include DJ then the DPU should be around 0.0434 +0.0022=0.0456
So it is 4.56 cents.

[tonylim]

Starhill Global REIT: BUY; S$0.595; Bloomberg Code: SGREIT SP
A landmark transaction

Price Target : 12-Month S$ 0.73 (Prev S$ 0.66)by:

Derek TAN +65 6398 7966
and MunYee LOCK +65 6398 7972


Asset portfolio to grow to S$2.6bn post acquisition of 2 Malaysian malls

Partially funded through new issuance of convertible preference units (“CPUs”)

Accretion to earnings estimated at 6-13% in FY10-11F

Maintain BUY, TP revised to S$0.73.



Adding Malaysia exposure in its portfolio. Starhill Global REIT (SGREIT) has signed an agreement to purchase Lot 10 and Starhill Gallery (located in central Kuala Lumpur, Malaysia) from Bursa-listed Starhill REIT at a cost
of RM 1.03 b (S$450.1m). Upon completion of the transaction, SGREIT’s portfolio of assets will increase by 20% to S$2.6bn.

Issuing new convertible units. The transaction will be funded through an asset-backed securitisation structure, involving cash (31% of purchase price), debt (32%) and the issuance of new convertible preference units (“CPUs”) (39%) . The CPUs, amounting to RM405 m (est. S$177m) will be paid an annual coupon of 5.65%, and convertible into new SGREIT units at a 30% premium to the last vwap upon listing of the CPUs. There is a moratorium of 3 years before the conversion, which will turn mandatory after 7 years.

6-13% accretion to FY10-11F distributions. Upon completion, we estimate distribution income accretion of c6-13% in FY10-11F. We have also accounted for the conversion of all of the CPUs in year 3 into new SGREIT units.

BUY, TP adjusted S$0.73. Maintain our BUY call, with adjusted target price of S$0.73 assuming the full conversion of the CPUs from FY13 after moratorium period. Further price catalyst in our view may come from: (i) stronger than expected 1Q10 results, and
(ii) clarity of its refinancing plans for majority of its loans due in Sept 2010.

(Document link: Singapore Research)

[tonylim]

Brother of Mdm.

20-04-2010
Name of Person* Ho Sing
Age * 43
Country of principal residence * Singapore
The Board's comments on this appointment (including rationale, selection criteria, and the search and nomination process) * The Board have confidence that Mr Ho will be able to execute his duties as the CEO of the Company due to his experience and expertise. Mr Ho was the General Manager, International Investment, at Guocoland Limited.
Whether appointment is executive, and if so, the area of responsibility * The appointment of Mr Ho is executive and he is to assist the Executive Chairman and the Board in the formulation of business, investment and operational strategies for Starhill Global REIT and the implementation of these strategies, including overseeing investment and asset management strategies.

[Blackjack]

Don't u think this is looking pretty good lately?

[tonylim]

Today's AGM,

Chairman, F Yeoh gave unitholders the assurance that the new management team led by Ho Sing will bring SGreit to a higher level by leveraging brand name of YTL, Starhill and Lot 10.
This will be a long term holding reit that they promised to payout good dividend even in bad time.
Internally they will cap their gearing to maximum 40% instead of the 60% which is permitable by By Law.
The AEI on Wisma Atria will be carried out in due course.
F. Yeoh spoke and carried himself well.

[Blackjack]

Thanks for the update tonylim. This is one of my core holdings.

[tonylim]

Need to add that if Chairman , Francis Yeoh's vision and plan is carried out accordingly , Starhill G reit will be one of the most outstanding reits in Asia.
He hopes to succeed it in the next 6 months with the new management team , led by New CEO Mr. Ho Sing.
With the track records of YTL, believe he is not buliding castle in the air.
Let's see how it goes.

[stilicon]

Many thanks tonylim for the updates.
I have also being accumulating this Reit lately. I think that below S$0,64, it can still be bought.