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Stocks In Focus SG (City Developments, Rex Int’l Hldg, Singapore Post) – 26/12/13
City Development’s Hotel Arm Acquires Hotel In London
City Development’s hotel arm Millennium & Copthorne Hotels via its subsidiary, Millennium Hotels (West London), has acquired a hotel and its related hotel assets in the Chelsea district of London, England for a purchase consideration of GBP65 million (approximately $134.7 million).
The hotel is a luxury property located within the Chelsea Harbour mixed-use development in London, SW10 0XG, that borders River Thames and offers 154 suites and four penthouses.
The property to be acquired has a remaining leasehold term of approximately 98 years, while the acquisition is expected to be completed by 1Q14.
Significance: The hotel to be acquired is one of the few hotels in the city to offer an all-suite guest accommodation, and is situated in a riverside area along the prestigious River Thames, that is expected to undergo further infrastructure improvements in the near future.
Rex Int’l Hldg Suspends Drilling Activity In Exploration Well
Rex International Holdings suspended drilling activity at its first exploration well, Masirah North North #1 (MNN #1) in Block 50 Oman due to safety reasons.
The MNN #1 well was drilled to a total depth of approximately 1,000 metres below mean sea level. Mud losses in two carbonate sections of the well obstructed the planned target depth to be reached.
A comprehensive data acquisition coring and logging programme of the formations that were drilled was completed on 21 December 2013. Data analysis indicates presence of non-commercial hydrocarbons.
Significance: Although a disappointment for Rex considering this is its first exploration well, however, the data acquired has assisted Rex’s partners in the Oman Block 50 project to identify a second exploration well as the next drilling location. It is anticipated that drilling at the new location will commence within the next two weeks.
Singpost Acquires Property In Malaysia
Singapore Post (Singpost) via its subsidiary, Collective Developers agreed to acquire Axis Plaza, an office property located in Selangor Darul Ehsan, Malaysia for a purchase consideration of RM34 million (approximately $13.1 million).
The property is acquired from Axis Real Investment Trust (REIT), the first Islamic office/industrial REIT in the world and has a portfolio of 31 assets with an estimated value of RM1.59 billion ($613.9 million) under management.
The acquisition expected to be completed in end April 2014, will be financed by the use of both cash and bank borrowings.
Signficance: In line with Singpost’s transformation strategy to expand beyond Singapore, the acquisition will support the company’s core operations into Malaysia.
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