Allco REIT

KK · Guru

Allco REIT

KK · Guru

Pursuant to Regulation 3(13) of the Securities and Futures (Market Conduct) (Exemptions) Regulations 2006, Credit Suisse (Singapore) Limited, as stabilising manager in respect of the Offering, hereby announces that it has, either as principal or through dealers on its behalf, purchased the following number of units in Allco REIT:

Date of Purchases : 05 April 2006
Total number of Units purchased : 7,922,000 shares
Price Range of Purchases : S$0.955 to S$0.97

My Comments - Total Vol. today 9,003,000. Creidt Suisse bot' aro' 80% of that! The vol went up a lot compared to yesterday and it looks like they hv used up their original 'war chest'! I wonder if they hv been given a new mandate to continue mopping up shares fm the sellers. May be an interesting day tomom! :D

KK · Guru

Fm SGX Announcement,

Pursuant to Regulation 3(13) of the Securities and Futures (Market Conduct) (Exemptions) Regulations 2006, Credit Suisse (Singapore) Limited, as stabilising manager in respect of the Offering, hereby announces that it has, either as principal or through dealers on its behalf, purchased the following number of units in Allco REIT:

Date of Purchases : 04 April 2006
Total number of Units purchased : 1,159,000 shares
Price Range of Purchases : S$0.965 to S$0.97

My Comments - Total Vol today is 2,480,000, which means aro' half is by Credit Suisse. Bal. in their 'war chest' is 6,455,000. Looks like total vol is slowing down and they may hv managed to contain the selling pressure after all. The yield vs price table,

$ 0.960 6.010%
$ 0.965 5.979%
$ 0.970 5.948%
$ 0.975 5.918%
$ 0.980 5.888%
$ 0.985 5.858%
$ 0.990 5.828%
$ 0.995 5.799%
$   1.00 5.770%

I think 6% yield is a good support level as evidenced by recent price pressure on Suntec and MMP. I noticed their share price is well supported by this 6% level. But, if interest rate shld continue to go up, then maybe there may be a mkt re-adjustment on this support.

-- Edited by KK at 22:20, 2006-04-04

KK · Guru

Fm SGX Announcement,

Pursuant to Regulation 3(13) of the Securities and Futures (Market Conduct) (Exemptions) Regulations 2006, Credit Suisse (Singapore) Limited, as stabilising manager in respect of the Offering, hereby announces that it has, either as principal or through dealers on its behalf, purchased the following number of units in Allco REIT:

Date of Purchases : 03 April 2006
Total number of Units purchased : 4,826,000 shares
Price Range of Purchases : S$0.97 to S$0.98

Announced by
Credit Suisse (Singapore) Limited
(as stabilising manager for the Offering)
(Company Registration No. 197702363D)

My Comments - Looks like the selling may be slowing down. Maybe the underwriter called up all those who'd gotten large blocks of placement shares to beg or threaten them not to sell! Public tranche was only 15Mil, so bulk of selling must be fm those who got it fm private placement.

Ttl Vol today is 6,293,000 and >75% was bot' by Credit Suisse. The bal of their 'war chest' is 7,614,000. Daily vol since IPO are 31.489Mil -> 26.275Mil -> 6.293Mil. Getting more and more interesting each day... :D

tfwee · Veteran

If anyone is keen to buy Allco REIT, it would be better to wait a week more as stabilsing effort will be ending.

KK · Guru

Extracts fm SGX Announcement,

Pursuant to Regulation 3(13) of the Securities and Futures (Market Conduct) (Exemptions) Regulations 2006, Credit Suisse (Singapore) Limited, as stabilising manager in respect of the Offering, hereby announces that it has, either as principal or through dealers on its behalf, purchased the following number of units in Allco REIT:

Date of Purchases : 31 March 2006
Total number of Units purchased : 13,533,000 shares
Price Range of Purchases : S$0.98 to S$0.99

Announced by
Credit Suisse (Singapore) Limited
(as stabilising manager for the Offering)
(Company Registration No. 197702363D)

My Comments - Total Vol today is 26,275,000 so, almost half is bot' by them. Bal. they can buy is 13,907,000, which may be enough to last them the whole of next wk, as the ttl vol is dropping every day.

-- Edited by KK at 19:45, 2006-03-31

tfwee · Veteran

Aiyo, Second Reit counter to trade below IPO already. Look like it will stay around this level for quite a while to match the Prime Reit Yield, which is one of the highest currently trading at SGX. Furthermore, this counter got more risk than Prime as it subject itself to exchange rate risk.

KK · Guru

Fm SGX Announcements,

OVER-ALLOTMENT OPTION AND STABILISATION

Pursuant to Regulation 3(2)(f) of the Securities and Futures (Market Conduct) (Exemptions) Regulations 2006, it is hereby announced that the Units may be subject to stabilising action and the total number of Units which is the subject of the Over-Allotment Option in accordance with the Prospectus is 48,188,000 Units.

In connection with the Offering, the Stabilising Manager may over-allot or effect transactions which stabilise or maintain the market price of the Units at levels which might not otherwise prevail in the open market. Such transactions may be effected on the Singapore Exchange Securities Trading Limited (the “SGX-ST”) and in other jurisdictions where it is permissible to do so, in each case in compliance with all applicable laws and regulations, including the Securities and Futures Act, Chapter 289 of Singapore and any regulations thereunder. Such transactions, if commenced, may be discontinued at any time and shall not be effected after the earlier of (i) the date falling 30 days after the date on which the listing of the Units on the Main Board of the Official List of the SGX-ST becomes effective or (ii) the date when the over-allotment of the Units which are the subject of the Over-Allotment Option has been fully covered (either through the purchase of the Units on the SGX-ST or through the exercise of the Over-Allotment Option by the Joint Lead Underwriters and Bookrunners, or through both) or (iii) the date falling 30 days after the date of adequate public disclosure of the final price of the Units, solely to cover over-allotments (if any) of Units in the Offering.

My Comments - Looks like the max no. of units to be bot' for stabilising purpose is 48,188,000

KK · Guru

Fm SGX Announcement,

Pursuant to Regulation 3(13) of the Securities and Futures (Market Conduct) (Exemptions) Regulations 2006, Credit Suisse (Singapore) Limited, as stabilising manager in respect of the Offering, hereby announces that it has, either as principal or through dealers on its behalf, purchased the following number of units in Allco REIT:

Date of Purchases : 30 March 2006
Total number of Units purchased : 20,748,000 shares
Price Range of Purchases : S$0.98 to S$1.00

Announced by
Credit Suisse (Singapore) Limited
(as stabilising manager for the Offering)
(Company Registration No. 197702363D)

My Comments - Total Vol traded today (fm 2pm) is 31,489,000 shares and Credit Suisse as stabilising mgr bot' aro' 2/3 of that! The public tranche was only 15,000,000 shares, so, it looks like many who got it fm placement are also selling. I wonder how deep is the pocket of Credit Suisse. Tomom would be a very interesting day indeed! :D

KK · Guru

KK wrote:

1. Impact of Exchange rate on DPU (pg84) For FY06, 5.77% annualised yield is based on an exchange rate of S$1:A$0.81. The yield drops to 5.7% for S$1:A$0.83, ie. a 2.5% appreciation of S$. The A$0.81 rate, I believe, is based on Dec05 exchange rate. Today, the S$ hv strengthened more than 6% against the A$. If this persists, the yield may drop to aro' 5.6% or lower. .

My reasoning may be flawed. I noticed that for the acquisition of Aust assets, the same A$0.81 exchange rate is also being used but in the prospectus, they did mention that they're hedged such that they can take advantage of better prevailing mkt rate. So, the immediate impact of exchange rate diff shld be minimal. Rather, pg84 shld be using the rate which is used to purchase the Aust assets as a reference. The current S$ strength may in fact turn out to be a blessing in disguise as it may enable Allco to acquire the Aust assets at a lower price (in terms of S$) and if S$ shld weaken subsequently during div payout time, the yield may even turn out to be higher! Hmm... now become a dilemma whether to subscribe or not... :)

KK · Guru

Some interesting observations fm the IPO prospectus,

1. Impact of Exchange rate on DPU (pg84)
For FY06, 5.77% annualised yield is based on an exchange rate of S$1:A$0.81. The yield drops to 5.7% for S$1:A$0.83, ie. a 2.5% appreciation of S$. The A$0.81 rate, I believe, is based on Dec05 exchange rate. Today, the S$ hv strengthened more than 6% against the A$. If this persists, the yield may drop to aro' 5.6% or lower.

2. Mgmt Fees by Issuance of Units (pg38)
The mgr has elected for FY06 and FY07 to be paid in new units rather than cash. If the payment had been thro' cash, the annualised yield is only aro' 5% for both FY06 and FY07. But, this arrangement is actually the same for most REITs. So, the actual yield appears to be more than 10% less.

KK · Guru

Allco Commercial Real Estate Investment Trust
Issue statistics:
Offer size: 321.255m new shares
Public Tranche - 15m shares
Placement Tranche - 306.255m shares
Price: S$1.00
NTA per share (post-IPO): S$0.93
Forecast Yield: 5.77% (FY06, Annualised)
Market Cap (post-IPO): S$494.6m
Open: 23 March 2006
Close: 28 March 2006, 8.30am
Trading: 30 March 2006, 2.00pm (on "when ready" basis)
Lead Manager: Credit Suisse

Allco REIT focuses on high-quality office and retail properties across the Asia-Pacific region. The Manager will invest primarily in real estate and real estate-related assets in the office and retail sectors in Singapore, other parts of Asia and Australia. It is the first REIT of its kind with assets in Singapore and Australia. Allco REIT will initially hold China Square Central, which makes up about 57% of its portfolio value of $683.9m. The remaining 43% consists of Australian assets such as Central Park in Perth. Underpinning the REIT's growth are the strengthening Singapore and Australian office property markets and the REIT's ability to leverage on its Sponsor's presence and connections in various Asia-Pacific countries. Allco REIT is sponsored by Allco Finance, a privately-owned Australian financial services company specialising in asset-based financing and fund management activities mainly in the aviation, property, rail, shipping and infrastructure sectors

Revenue S$'000----yoy % chg
FY05 33,910
FY1Q05 8,598
FY1Q06 8,116

Total Return S$'000---yoy % chg
FY05 ( -605 )
FY1Q05 ( -7,711 )
FY1Q06 1,241---------n.m.

Sources of Funds (S$'000)---Use of Funds (S$'000)
Equity 490,605-----------------Purchase/subscription price of real estate & real estate-related assets 683,873
Debt (LN Facility)234,000--------------------Acquisition and debt-related costs 25,105
Debt (Revolving Credit Facility) 5,356------Issue Costs 19,671
-----------------------------------------------------Other Cost 1,311
Total 729,961----------------------------------Total 729,961