Saizen REIT

[sreitinvestor]

First quarter 2010 results for Saizen Reit:

Key Points
* Property operations in the third quarter ended 31 March 2010, which has been the busy leasing season, remained stable with overall occupancy rate remaining healthy at 93.4% at the end of March 2010.
* Financial position continued to strengthen with repayment of loans and establishment of new banking relationships.
* Repaid all but one commercial mortgage-backed securities (CMBS) loan.
* Have turned the corner and have begun cash accumulation in May
2010 for distribution for the financial year ending 30 June 2010. Unitholders can expect to receive it in September 2010.


http://sreitinvestor.blogspot.com/p/dat ... lease.html

[winston]

Vested. From Lim & Tan:-

Raymond Wong bought 186,000 SAIZEN shares at 16.5 cents each, raising holding to 18.77 mln shares.

[winston]

Vested

Resumption of distributions.

Saizen Real Estate Investment Trust (“Saizen REIT”) has declared a distribution of 0.26 Singapore cents (“cents”) per Unit for the financial year ended 30 June 2010 (“FY2010”). This distribution relates to distributable cash accumulated over two months (May 2010
and June 2010), after the repayment of the loan of Yugen Kaisha (“YK”) Keizan in April 2010.

The overall occupancy rate as at 30 June 2010 was 91.3%, while overall rental reversion
of new contracts entered into in FY2010 was marginally lower by about 5.3% from previous contracted rates. The average turnover rate was 20% in FY2010, as compared to 22% in FY2009.

Financial position strengthened with loan repayments, new banking relationships and loan
refinancing. The capital structure of Saizen REIT had changed substantially in FY2010. Three CMBS loans, amounting to an aggregate of JPY 7.0 billion (S$110.4 million), were fully repaid in FY2010 with operational cash flow and proceeds of a rights issue conducted in May 2009.

New banking relationships were established with Mizuho Bank Ltd and Tokyo Star Bank Ltd in FY2010, representing new financing amounting to an aggregate of JPY 3.0 billion (S$47.3 million). Further, the JPY 5.9 billion (S$93.1 million) loan of Godo Kaisha (“GK”) Choan, which was due to mature in July 2011, was successfully refinanced with a maturity date of 15 June 2013.

Divestment of five properties. Five properties from the property portfolio of YK Shintoku were sold in the first half of FY2010 as part a deleverging plan implemented to reduce the absolute amount of the loan of YK Shintoku and the leverage of the corresponding property portfolio, so as to facilitate refinancing efforts.

One of the five properties was sold at a premium of about 7% over its valuation,
while the other four properties were sold at discounts of between 5% to 9% to valuation.

http://info.sgx.com/webcoranncatth.nsf/ ... penelement

[memphisb]

DIVESTMENT OF FOUR PROPERTIES

The Board of Directors of Japan Residential Assets Manager Limited, the manager ("Manager") of Saizen Real Estate Investment Trust ("Saizen REIT"), wishes to announce the divestments of Sun Park Yokokawa, Funairi Honmachi 54, Residence II Yasuda and Matoba Y Building (each a “Current Divestment” or collectively, the “Current Divestments”) from the property portfolio of Yugen Kaisha (“YK”) Shintoku.


Background


Sun Park Yokokawa

YK Shintoku has, on 29 September 2010, entered into a sale and purchase agreement for the divestment of Sun Park Yokokawa (“SPY”) to an independent private investor (the “SPY Buyer”) for a cash consideration of JPY 55,000,000 (S$0.9 million1) (the “SPY Sale Price”).

The divestment of SPY was completed on the same day upon the payment of the full amount of the SPY Sale Price by the SPY Buyer.

SPY, located in Hiroshima, was built in February 1988 and comprises 21 residential units. It contributed about 0.2% (or approximately JPY 6.8 million) of Saizen REIT’s annual revenue in the financial year ended 30 June 2010 (“FY2010”).


Funairi Honmachi 54

YK Shintoku has, on 29 September 2010, entered into a sale and purchase agreement for the divestment of Funairi Honmachi 54 (“FH”) to an independent private investor (the “FH Buyer”) for a cash consideration of JPY 154,000,000 (S$2.4 million) (the “FH Sale Price”). The divestment of FH was completed on the same day upon the payment of the full amount of the FH Sale Price by the FH Buyer.

FH, located in Hiroshima, was built in March 1992 and comprises 28 residential units, 1 commercial unit and 3 car parking units. It contributed about 0.4% (or approximately JPY 18.0 million) of Saizen REIT’s gross revenue for FY2010.


Residence II Yasuda

YK Shintoku has, on 29 September 2010, entered into a sale and purchase agreement for the divestment of Residence II Yasuda (“RY”) to an independent private investor (the “RY Buyer”) for a cash consideration of JPY 85,250,451 (S$1.3 million) (the “RY Sale Price”). The divestment of RY was completed on the same day upon the payment of the full amount of the RY Sale Price by the RY Buyer.

[winston]

Vested. RNAV 0.40. Hoped that they are selling at > = NAV .

[pierre07]

vested too. Looking forward to the successful refinancing of the YK Shintoku loan. Think it will be a positive catalyst for the reit to be re-rated.

[winston]

Vested


DIVESTMENT OF 3 PROPERTIES

The Board of Directors of Japan Residential Assets Manager Limited, the manager (“Manager”) of Saizen Real Estate Investment Trust (“Saizen REIT”), wishes to announce the divestment of Higashi Hakushima Y Building, Otemachi Y Building and Kinyacho Y Building (each a “Current Divestment” or collectively, the “Current Divestments”) from the property portfolio of Yugen Kaisha (“YK”) Shintoku.


Rationale

Since the loan of YK Shintoku (the “YK Shintoku Loan”) went into maturity default in
November 2009, the asset manager of Saizen REIT has been working closely with the loan
servicer on a suitable course of action.

To this end, the loan servicer has proposed the progressive and partial sale of YK Shintoku’s properties to reduce the absolute amount of the YK Shintoku Loan. Such reduction in absolute amount of the loan will likely make its refinancing more acceptable to potential lenders.

http://info.sgx.com/webcoranncatth.nsf/ ... penelement

[winston]

Vested. Looks like they are making progress on YK Shintoku ...


Outlook for 2011:-
• Property operations expected to remain stable
• Continue to seek refinancing for loan of YK Shintoku
• Only loan to mature in FY2011 will be repaid using internal cash resources or be refinanced
• Explore divestment of existing properties and new acquisitions rebalancing of portfolio with, especially in the Tokyo region, to enhance quality and growth potential of property portfolio

http://info.sgx.com/webcoranncatth.nsf/ ... penelement

[winston]

vested

To-date, YK Shintoku has divested a total of 16 properties (5 properties in FY2010, 5 properties in 1Q FY2011 and 6 properties in October and November 2010) as part a deleveraging plan implemented to reduce the absolute amount of the loan of YK Shintoku and the leverage of the corresponding property portfolio, so as to facilitate refinancing efforts.

The loan of YK Shintoku has been reduced from JPY 7.1 billion (S$111.6 million1) as at 30 June 2010 to about JPY 5.6 billion (S$88.1 million) as at the date hereof.

Taking into account applicable cash reserves of JPY 0.6 billion (S$9.4 million) maintained by YK Shintoku under the loan agreement, the net outstanding loan of YK Shintoku amounts to approximately JPY 5.0 billion (S$78.6 million).

Several divestments of YK Shintoku’s properties are expected in the coming months to reduce the loan amount further.

http://info.sgx.com/webcoranncatth.nsf/ ... penelement

[winston]

Saizen rids Reef Suite in Sapporo for S$1.9 mln
By ANGELA TAN

Saizen Real Estate Investment Trust (Saizen Reit) said on Monday that Yugen Kaisha (YK) Shintoku has sold Reef Suite to an independent private investor for S$1.9 million cash.

Reef Suite, located in Sapporo, was built in September 2005 and comprises 18 residential units and 15 parking units. It contributed about 0.3 per cent or about JPY 13.5 million of Saizen Reit's annual revenue in the financial year ended 30 June 2010 (FY2010).

( Sin$1.9m for 18 units ? )

Real Value Inc, an independent valuer, had valued Reef Suite at S$2.1 million on June 30, 2010.

The sale price therefore represents a 6.7 per cent discount to the valuation.

'Given the small size of Reef Suite relative to the entire portfolio of Saizen Reit, the current divestment is not expected to have any material impact on the financial position of Saizen Reit,' Saizen Reit said.

Source: Business Times