Property Being Developed by Ascendas for Infineon Technologies in Kallang Sector

Transcription

1 Presentation in relation to the acquisition of Property Being Developed by Ascendas for Infineon Technologies in Kallang Sector 22 September 2003

2 Agenda The Property Impact on A-REIT Timetable for Completion Investment Focus 2

3 The Property Location of Proposed Acquisition Siemens Building Wincor Nixdorf Infineon Technologies Headquarters Pte Lot A20639 at Kallang Sector, in the east of Singapore p1] 3

4 The Property Proposed Acquisition 4

5 The Property Property Details Building type Proposed Gross Floor Area Site Area Title Valuation Purchase Price Acquisition Costs Yield (after acquisition costs) Two 10-storey towers 27,109 sqm (subject to survey) 10,945 sqm (subject to survey) Leasehold, 30 years commencing 1 July 2003, with an option to renew for a further 17 years An independent valuation will be conducted prior to obtaining unitholders approval S$50.9m (subject to adjustment based on final construction costs) S$2.5m 7.8% (This yield will be enhanced should the final purchase price differ from the anticipated purchase price above) 5

6 The Properties Leasing Details Tenant(s) Commencement Date Occupancy Rent Escalation Yield (after acquisition costs) Lease Term Outgoings Infineon Technologies Asia Pacific Pte Ltd Upon issue of temporary occupation permit (estimated to be August 2004) To be fully occupied by Infineon Annual stepped rental increases 7.8% 12 yrs Property tax, land rent and lease management cost to be paid by lessor (A-REIT). All maintenance and utility expenses to be paid by lessee (Infineon Technologies Asia Pacific Pte Ltd). 6

7 Agenda The Properties Impact on A-REIT Portfolio Diversification Lease Expiry Profile Timetable for Completion Investment Focus 7

8 Impact on A-REIT Diverse Portfolio of 12 Properties 4 business/science park properties The Alpha The Aries The Capricorn The Gemini Techplace II at Ang Mo Kio Ave 5 Techplace I at Ang Mo Kio Ave 10 Honeywell Building at Changi Business Park Ultro Building at Changi Business Park 5 built-to-suit Honeywell Building OSIM Building Ghim Li Building Ultro Building Infineon Technologies Bldg Techlink at Kaki Bukit Ave 3 3 light industrial properties Techlink Techplace I Techplace II 8 The Alpha, Aries, Capricorn and Gemini at Singapore Science Park II Infineon Technologies Buildng at Kallang Sector OSIM Building at Ubi Ave 1 Ghim Li Building at Changi South Ave 2

9 Agenda The Properties Impact on A-REIT Portfolio Diversification Lease Expiry Profile Timetable for Completion Investment Focus 9

10 Impact on A-REIT Lease Expiry Profile 25% 20% 18.80% 17.60% 14.60% 13.60% 20.90% 19.50% 12.00% 11.20% 0.50% 0.40% 0.90% 0.80% 5.10% 4.80% 6.30% 5.90% 4.70% 4.40% 6.60% 15% 10% 5% 0% % Financial Year Ended 31 March Pre-Acquisition Post-Acquisition Source : Ascendas-MGM Funds Management Limited (information as at 30 June 2003) 10

11 Agenda The Properties Impact on A-REIT Portfolio Diversification Lease Expiry Profile Timetable for Completion Investment Focus 11

12 Timetable for Completion Infineon Building Sep 03 Jul 03 - Aug 04 Feb - Aug 04 Signed Put and Call Option Agreement Construction of building for Infineon Technologies Unitholders approval Aug 04 Issue of temporary occupation permit Aug - Sep 04 Exercise option Execution of Sale and Purchase Agreement Completion 12

13 Agenda The Properties Impact on A-REIT Portfolio Diversification Lease Expiry Profile Property Yield Timetable for Completion Investment Focus 13

14 Investment Focus A. Well-located properties B. Strong tenancy profile C. Diversify property portfolio of A-REIT D. Diversify tenant mix and industry type in A-REIT s portfolio E. Extend lease expiry profile of A-REIT F. Yield-accretive G. Enhance returns to unitholders 14

15 The value of units in A-REIT ( Units ) and the income from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. Investors have no right to request the Manager to redeem their Units while the Units are listed. It is intended that Unitholders may only deal in their Units through trading on the SGX-ST. Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. The past performance of A-REIT is not necessarily indicative of the future performance of A-REIT. This release may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels of property rental income, changes in operating expenses, including employee wages, benefits and training, property expenses and governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward looking statements, which are based on current view of management on future events.

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