Singapore Daily Bulletin – 05/02/13

GLP And CPPIB Expand Japan Development Venture To US$2.2b
Global Logistic Properties (GLP) announced the expansion of GLP Japan Development Venture (Venture), its 50-50 joint venture with Canada Pension Plan Investment Board (CPPIB) to develop modern logistics properties in Japan. According to the media release, both CPPIB and GLP have agreed to expand the investment capacity of the Venture and will each contribute an additional 29 billion yen (US$316 million) of equity. “Our investment pipeline is considerably ahead of schedule and we are seeing strong demand for our developments, reflecting attractive fundamentals for modern logistics facilities in Japan,” said GLP group’s co-founder, Jeffrey Schwartz.

Significance: The new equity commitment more than doubled the total equity allocated to GLP Japan Development Venture to 100 billion yen (US$1.1 billion). With leverage, the Venture’s investment target is US$2.2 billion and the investment identification period has been reset for another three years from the signing date.

Golden Agri Forms Second JV With Stena Bulk
Golden Agri-Resources (GAR) and tanker shipping firm Stena Bulk A/B have set up a new 50-50 joint venture (JV), namely Golden Stena Bulk. For a start, the JV will take over four product tankers ordered by Stena Bulk in June 2012. The JV can be seen as the second collaboration between Golden Agri and Stena Bulk. In 2012, Stena Weco – a partnership between Stena Bulk and Danish Dannebrog – formed a JV with Golden Agri – Golden Stena Weco – aimed at transporting Golden Agri’s palm oil products internationally. With offices in six countries, Stena Bulk is one of the world’s leading tanker shipping companies and controls a combined fleet of around 100 tankers.

Significance: With GAR’s rapid growth, the collaboration with best-in-class shipping partners can be viewed as a critical move for the firm to secure a safe and efficient transportation for its products.

Wing Tai’s 2Q13 Bottom Line More Than Doubles To $88.7m
Wing Tai Holdings’ earnings for the second quarter ended 31 December 2012 jumped 159 percent to $88.7 million while revenue increased 73 percent to $322 million. The improved performance contributed by revenue recognised from the progressive sales of Foresque Residences and L’VIV as well as the additional units sold in Helios Residences and Belle Vue Residences in Singapore. In November 2012, company was awarded the tender of a residential land in Shanghai Baoshan District. Moving forward, Wing Tai will continue to explore investment opportunities in the markets it operates, and will launch new residential projects for sale at appropriate times in the current year.

Significance: Maybank Kim Eng maintained “Buy” with target price of $2.55 on Wing Tai, saying that its valuations remain strong with low net gearing ratio of 0.16x and strong cash and cash equivalents of $1 billion as at 31 December 2012. The house further added that the “not overextended” balance sheet will provide the firm with ample ammunition should more attractive acquisition opportunities arise.