Van Der Horst Sells 51% Of GKE To LD Commodities
Van Der Horst Energy (VDHE) has inked an agreement with LD Commodities Metals Asia, to sell a 51 percent stake in its wholly owned subsidiary GKE Metal Logistics for $8 million. According to its filing, the subsidiary engages in metal logistics services in Singapore and Shanghai and is a warehouse operator approved by the London Metal Exchange (LME) to take custody of non-ferrous metals traded on the LME. In addition, GKE has a 65 percent owned subsidiary in China, GKE (Shanghai) Metal Logistics, which principally operates in the business of storage, freight forwarding, warehousing, packing, removal, and delivery services.
Significance: VDHE considers LD Commodities to be a strategic partner that can enhance its metal logistics business. Specifically, LD Commodities’ presence in refined metals in Asia will complement GKE’s existing logistics operations in Singapore and Shanghai. It also hopes that GKE’s domestic activities in China will be accelerated under the partnership.
Treasury China Secures Tenants For The HQ
Treasury China Trust has recently secured three additional leasing transactions for its landmark development The HQ, bringing pre-commitment of its expanded retail mall to 27 percent. The HQ, a 264,000 square metre (sqm) fully integrated commercial complex, was formally launched in October 2011. The mall is currently undertaking construction of another 88,000sqm, this extension will be completed in September 2013. On the three secured tenants, it includes Hongqiao Century Cinema – the existing cinema operator of eight years – whose lease terms reflect a 175 percent increase in rent. The other two tenants are the Inditex Group from Spain and high-end supermarket Ole’.
Significance: Such high-profile retail leasing transactions complement and enhance the unique retail offering of The HQ. It is also a strong testimony of the attractiveness of the flagship development.
OCBC: Healthcare REITS Assessed As Defensive Stocks
In its market research paper, Market Pulse, OCBC remarked that healthcare REITS listed in Singapore offers sanctuary for risk adverse investors who are on the prowl for defensive stocks. The research house pointed to improved financial performance during the recently concluded 4Q11 earnings season that was driven by internal as well as external growth. Due to the triple net lease structure inherent in most master leases of both healthcare REITS, both players were able to command high net property income of 98.9 percent and 91.5 percent for FY11. OCBC also noted that both FIRST REIT and Parkway Life REIT have expanded their geographical footprint with several acquisitions during FY11 in Asia. These acquisitions seem to suggest a growing desire by both healthcare REITS to leverage on the robust fundamentals in the regional healthcare scene. The research house maintained its “Overweight” rating for both healthcare REITS.
Significance: As the macroeconomic climate continues to remain volatile and uncertain, the long term defensive lease structures of healthcare REITS, could offer investors substantial downside revenue protection and strong sponsor support.