Saizen REIT (SZREIT SP) - RHB Invest 2016-10-03: Proposed Acquisition Lapsed

Saizen REIT (SZREIT SP) - RHB Invest 2016-10-03: Proposed Acquisition Lapsed SAIZEN REAL ESTATE INV TRUST T8JU.SI

Saizen REIT (SZREIT SP) - Proposed Acquisition Lapsed

  • Saizen REIT (SZREIT SP) announced on Sat that the framework agreement entered into between Saizen REIT and Sime Darby Property Singapore Limited (SDPSL) and Hastings Deering (Australia) Limited (HDAL), in relation to the proposed acquisition by Saizen REIT of Industrial properties in Australia and in part the reverse takeover of Saizen REIT by SDPSL, has lapsed (Long- Stop Date: 30 Sep). 
  • Definitive agreements for the properties acquisition have not been entered into. The framework agreement previously delineates that SDSPL and/or HDAL shall reimburse Saizen REIT for transaction expenses incurred up to the Long-Stop Date and operating costs. Saizen REIT stated that it Manager continues to be in discussion with SDPSL and HDAL though.
  • Recall that Saizen REIT became a shell or cash trust following the sale of all its properties for SGD517.3m (Offer Price: SGD1.17) in Mar 2016 to Japanese affiliate Lone Star Real Estate fund. 
  • It subsequently announced and paid out a special distribution of SGD1.056 in Mar and distribution of SGD0.075 in Sep. We believe that the market would react negatively to this on first take, given that Saizen REIT's share price has risen steadily even after the payouts. 
  • However, with the lapse of the Long-Stop Date, the 'No-Shop Obligation' binding Saizen REIT is possibly released, and it can now possibly solicit any approach, expression of interest of interest, offer or proposal from other interested parties. 
  • RHB does not have a rating for this trust presently.

Ong Kian Lin RHB Invest | 2016-10-03
RHB Invest SGX Stock Analyst Report NOT RATED Maintain NOT RATED 99998 Same 99998