SINARMAS LAND: Potential securitisation of property portfolio

Alphabeta7.15
Alphabeta is the newest architectural expression of the 'new economy'. Photo: Alphabeta

Sinarmas Land (SML SP) announced that it has acquired a freehold prime commercial Property in London (BUY)

Sinarmas Land announced that it has acquired a freehold prime commercial property in London, Alphabeta Building, for £258.7m (S$551.3m).

The property, which has net leasable area of 243,850 sq ft, is a Grade A office property in eastern London near the Shoreditch area and is fully leased with a weighted average lease expiry of 13 years.

The total acquisition price of £280m reflects a cap rate of 4.5% and has provision for future positive rent reversion.

Stock price (22 Jul 2015)	58 cents
52-week range	56 – 85.5 cents
PE (ttm)	6.73
Market cap	S$1.84 billion
Price/book	1.0
Dividend yield Bloomberg data	0.83%

Alphabeta Building is the third London property that SML is acquiring following the purchase of New Brook Building in May 2013 and Warwick House in September 2014.

New Brook was subsequently sold for a 45% gain.

SML is bulking up its commercial property portfolio in gateway cities overseas for a potential securitisation down the road.

Earlier in May, the group successfully listed its industrial real estate arm in Greater Jakarta on the Indonesia bourse. We have a Buy rating on the stock with a SGD1.01 TP.

Counter Name	Last	Change
AEM Holdings	1.840	-0.020
Best World	2.480	-
Boustead Singapore	0.950	-0.005
Broadway Ind	0.145	0.005
China Aviation Oil (S)	0.865	-0.005
China Sunsine	0.390	-0.005
ComfortDelGro	1.390	-0.010
Delfi Limited	0.875	-
Food Empire	1.120	-0.010
Fortress Minerals	0.310	-
Geo Energy Res	0.300	0.005
Hong Leong Finance	2.420	-0.010
Hongkong Land (USD)	3.420	0.010
InnoTek	0.505	-
ISDN Holdings	0.300	-0.005
ISOTeam	0.047	-
IX Biopharma	0.039	-0.004
KSH Holdings	0.245	-
Leader Env	0.049	-
Ley Choon	0.055	-0.001
Marco Polo Marine	0.068	-0.003
Mermaid Maritime	0.135	0.002
Nordic Group	0.305	-
Oxley Holdings	0.090	0.001
REX International	0.124	-
Riverstone	0.930	0.005
Southern Alliance Mining	0.480	-
Straco Corp.	0.490	-
Sunpower Group	0.230	-
The Trendlines	0.063	-
Totm Technologies	0.019	-0.002
Uni-Asia Group	0.810	-0.035
Wilmar Intl	3.160	-
Yangzijiang Shipbldg	1.750	-0.020

Counter Name

Last

Change

AEM Holdings

1.840

-0.020

Best World

2.480

Boustead Singapore

0.950

-0.005

Broadway Ind