C&G In Final Negotiations For Rmb980m Project
Waste-to-energy (WTE) operator and investors, C&G Environmental Protection Holdings has been selected as the first preferred bidder of the Guiyang WTE project. The project is designed to have a daily handling capacity of 2,000 tonnes and would be able to generate up to 48 megawatts of electricity annually. The Guiyang WTE project is valued at an estimated Rmb980 million ($195 million). The plant will be able to serve its surrounding area of 8,034 square kilometres and a population of 4.3 million. Being the first preferred bidder, C&G will now commence final negotiations with the Guiyang authorities regarding the final terms and conditions of the project agreements. Lin Yan, executive chairman and group chief executive officer remarked that the selection of C&G as the first preferred bidder marks a milestone for the company in its strategic expansion into major Chinese cities, after Dalian.
Significance: Should negotiations be successful, the project would be the largest for C&G both in terms of design capacity and investment amount. However, since negotiations are still ongoing, the project will only be able to contribute financially to the company upon commencement of operations.
Cache Logistics Completes Acquisition Of Pandan Logistics Hub
The manager of Cache Logistics Trust announced on 3 July 2012 that the trust had completed the acquisition of Pandan Logistics Hub. The $66 million acquisition is the Trust’s largest to date and increases the total assets under management to $944 million. The investment property has a net property income (NPI) yield of 7.6 percent which is in line with Trust’s existing portfolio. With the acquisition, Cache’s market share of ramp-up warehouses in Singapore has increased by 1.7 percentage points to 22.9 percent. The acquisition is fully debt-funded resulting in Cache’s aggregate leverage at approximately 32.5 percent. Daniel Cerf, chief executive officer of the Trust’s manager said that the trust not only benefitted from the addition of the asset to its portfolio, but also managed to refinance its loans to enable the acquisition to remain “unencumbered”. The refinancing is also expected to provide greater financial flexibility to the Trust in the future.
Significance: While the NPI yield of Pandan Logistics Hub is not seen to be relatively accretive to overall portfolio yield, the acquisition of the property has resulted in other increases such as market share and the reduction of average building age to 4.4 years.
Hyflux Opens New Innovation Centre
Hyflux unveiled its new global headquarters, the Hyflux Innovation Centre (HIC), setting the stage for its next phase of growth. The HIC will serve as the nerve centre of Hyflux’s operations. It will house the engineering design and technology commercialisation departments that integrate the technologies developed out of the company’s research and development (R&D) laboratories into viable, cost-effective and sustainable solutions for the global water industry. Hyflux also intends to move its R&D laboratories to HIC when the lease at Hyflux Building ends. Olivia Lum, executive chairman and chief executive officer said that Hyflux believes its next phase of growth will be innovation based and that the company needs to “do better with less”.
Significance: In the last eight years, Hyflux has extended its reach beyond Singapore and China to the Middle East and other regions. The new headquarters is a testament of this expansion as Hyflux strives to concentrate its nerve centre in Singapore.