NEWS RELEASE
For Immediate Release
JTC TO DIVEST HIGH-RISE INDUSTRIAL PROPERTIES TO MAPLETREE
Singapore, 22 April 2008: JTC Corporation (“JTC”) today announced that it will be divesting a selected portfolio of high-rise ready-built properties to Mapletree Investments Pte Ltd (“Mapletree”) for a total consideration of S$1.71 billion. This divestment option was part of Mapletree’s proposal to JTC, when Mapletree was appointed by JTC as the real estate investment trust (REIT) manager for the selected portfolio in February this year.
2 JTC and Mapletree announced that based on the advice of the REIT financial advisors (DBS Bank, Goldman Sachs and UBS AG), they will not be proceeding with the proposed listing of the portfolio of properties via a REIT at the present time. This is in light of the current volatile market conditions which are not conducive for a REIT initial public offering (IPO). Instead, JTC will divest the portfolio of properties to a private trust sponsored by Mapletree.
3 The properties to be divested comprise 39 blocks of flatted factories, 12 amenity centres, six stack-up and one ramp-up buildings, three multi-tenanted business park buildings (the Synergy & the Strategy at the International Business Park and the Signature at the Changi Business Park) and one warehouse building. The transfer of properties to Mapletree is expected to be completed by 1 July 2008. Details of the properties to be divested are in Annex A.
4 Mrs Ow Foong Pheng, Chief Executive Officer of JTC, said, “Since the appointment of Mapletree as the REIT manager in February, the global and local capital markets have continued to remain volatile. The backstop option in Mapletree’s proposal to buy the properties at a total consideration of $1.71 billion is very attractive. With the divestment of properties to Mapletree, we are confident that our customers will stand to benefit from Mapletree’s strong track record in the industrial property sector and its local and international expertise.”
5 Mr Hiew Yoon Khong, Chief Executive Officer of Mapletree said, “We are happy to be presented with the opportunity to acquire this portfolio. The properties are attractive and well-diversified in terms of tenancy, location and asset type. This acquisition will allow us to scale up our real estate fund management business significantly.”
6 He added: “Mapletree will explore the possibility of listing the portfolio as a REIT, possibly in combination with other Mapletree industrial assets in due course. We believe that this is an excellent portfolio to be potentially offered to investors as a yield-based investment product. Meanwhile, our immediate focus will be to ensure a smooth transition for tenants and we look forward to working closely with them in the near future.”
7 The divestment of properties to Mapletree is part of JTC’s overall divestment exercise to promote competitiveness and vibrancy in the industrial property market. The divestment will also enable JTC to focus on being a strategic infrastructure provider to support Singapore’s economic growth and position Singapore as the choice investment location.
About JTC Corporation
JTC Corporation (JTC) is the lead agency in Singapore to plan, promote and develop a dynamic industrial landscape, in support of the nation's economic advancement. Currently, the Corporation has under its management many developments including four wafer fab parks, an advanced display park, two business parks, a chemicals hub at Jurong Island, biomedical parks in Tuas as well as logistics hubs for aerospace, chemical and general warehousing industries.
JTC also plays a catalytic role in introducing leading-edge real estate solutions -- such as specialised research facilities and underground caverns -- to anchor important activities critical to the growth of the economy. It is the master developer for one-north at Buona Vista -- a 200-hectare development for research and entrepreneurial activities. With a focus on knowledge-intensive activities in the biomedical, infocomms and media industries, one-north is a niche environment for innovation and creativity.
In line with its vision of making Singapore the choice investment location, JTC is committed to providing a pro-business environment for its customers and optimising land resources to meet the needs of industries and enterprises. JTC's home page address is http://www.jtc.gov.sg.
About Mapletree Investments Pte Ltd
Mapletree Investments Pte Ltd (Mapletree) is a leading real estate company in Singapore with an Asian focus. It has an asset base of approximately S$4.4 billion comprising office, logistics, industrial and retail/lifestyle properties as well as assets under management of S$3 billion across Asia.
Its business philosophy is to shape new ways to deliver value to its stakeholders from real estate and related investments. It aims to be a strategic real estate partner providing real estate solutions, including capital management and quality property-related services and products, to its business partners.
Mapletree has extensive skills and experience in managing industrial and logistics properties and in structuring and managing REITs. It is the Sponsor for Mapletree Industrial Fund (MIF), a private real estate fund which invests in industrial real estate across Asia for yield and capital appreciation. MIF completed its first closing in November 2006 at US$310 million with Bahrain-based Ahli United Bank’s AUB Pan Asian Industrial Fund as a cornerstone investor. Mapletree is also the Sponsor for Mapletree Logistics Trust (MapletreeLog), the first Asia-focused logistics real estate investment trust in Singapore.
Annex A – List of properties divested to Mapletree
|
Kaki Bukit |
2 Kaki Bukit Avenue 1 |
Flatted factory |
|
|
4 Kaki Bukit Avenue 1 |
Flatted factory |
|
|
6 Kaki Bukit Avenue 1 |
Amenity |
|
|
8 Kaki Bukit Avenue 1 |
Flatted factory |
|
|
10 Kaki Bukit Avenue 1 |
Flatted factory |
|
Changi North |
11 Changi North Street 1 |
Flatted factory |
|
Clementi West |
1 Clementi Loop |
Warehouse |
|
Lorong Bakar Batu |
8 Lorong Bakar Batu |
Flatted factory |
|
|
10 Lorong Bakar Batu |
Amenity |
|
|
12 Lorong Bakar Batu |
Flatted factory |
|
Kallang Way |
161 Kallang Way |
Flatted factory |
|
|
155 Kallang Way |
Flatted factory |
|
Kallang Sector |
1 Kallang Sector |
Flatted factory |
|
|
3 Kallang Sector |
Flatted factory |
|
|
5 Kallang Sector |
Amenity |
|
Loyang |
30 Loyang Way |
Flatted factory |
|
|
2 Loyang Lane |
Flatted factory |
|
|
4 Loyang Lane |
Flatted factory |
|
|
4A Loyang Lane |
Amenity |
|
Tanglin Halt |
115A Commonwealth Drive |
Flatted factory |
|
|
115B Commonwealth Drive |
Flatted factory |
|
Kallang Place |
28 Kallang Place |
Flatted factory |
|
|
26 Kallang Place |
Flatted factory |
|
|
30 Kallang Place |
Flatted factory |
|
Kallang Avenue |
19 Kallang Avenue |
Flatted factory |
|
|
21 Kallang Avenue |
Flatted factory |
|
|
23 Kallang Avenue |
Amenity |
|
|
25 Kallang Avenue |
Flatted factory |
|
Redhill |
1001 Jalan Bukit Merah |
Flatted factory |
|
|
1002 Jalan Bukit Merah |
Flatted factory |
|
|
1001A Jalan Bukit Merah |
Amenity |
|
|
1003 Bukit Merah Central |
Flatted factory |
|
|
3752 Bukit Merah Central |
Amenity |
|
Telok Blangah |
1160 Depot Road |
Flatted factory |
|
|
1200 Depot Road |
Flatted factory |
|
|
1200A Depot Road |
Amenity |
|
Woodlands Central |
33 Marsiling Ind Est Road 3 |
Flatted factory |
|
|
35 Marsiling Ind Est Road 3 |
Flatted factory |
|
Signature |
51 Changi Business Park Central 2 |
Business park |
|
Synergy |
1 International Business Park |
Business park |
|
Strategy |
2 International Business Park |
Business park |
|
Kampong Ampat |
171 Kampong Ampat |
Flatted factory |
|
Tiong Bahru |
1090 Lower Delta Road |
Flatted factory |
|
|
1091 Lower Delta Road |
Flatted factory |
|
|
1092 Lower Delta Road |
Flatted factory |
|
|
1093 Lower Delta Road |
Flatted factory |
|
|
1091A Lower Delta Road |
Amenity |
|
|
1080 Lower Delta Road |
Amenity |
|
Serangoon North |
6 Serangoon North Ave 5 |
Flatted factory |
|
Toa Payoh |
970 Toa Payoh North |
Flatted factory |
|
|
998 Toa Payoh North |
Flatted factory |
|
|
970A Toa Payoh North |
Amenity |
|
|
1004 Toa Payoh North |
Flatted factory |
|
|
1008 Toa Payoh North |
Flatted factory |
|
|
1008A Toa Payoh North |
Amenity |
|
Woodlands Spectrum 1 & 2 |
2 Woodlands Sector 1 |
Stack-up |
|
|
201 Woodlands Ave 9 |
Stack-up |
|
|
203 Woodlands Ave 9 |
Stack-up |
|
|
205 Woodlands Ave 9 |
Stack-up |
|
|
207 Woodlands Ave 9 |
Stack-up |
|
|
209 Woodlands Ave 9 |
Stack-up |
|
|
211 Woodlands Ave 9 |
Ramp-up |