Fraser Comemrcial Trust

Fraser Comemrcial Trust: CIMB maintains O/p with $1.14 TP. Note that FCOT has announced that it has entered into agreements for a $320m three-year loan and a $185m five-year loan to refinance its $500m SGD term loan facility. Interest rates for the loans are at SOR plus margins of 1.55% and 1.83% respectively from the date of first drawdown. The loans are secured over China Square Central, 55 Market Street and Alexandra Technopark. Loans are secured at an overall margin of 165bps over SOR, a 100bps saving from the previous borrowing spread of 265bps. This is fairly in-line with expectations. While FCOT has entered into agreements for a collective $505m in borrowings for refinancing, house expect a partial repayment eventually when unit holders approve the sale of KeyPoint during the EGM on 12 Jul 2012. Overall, house keep DPUs and DDM-based target price unchanged with refinancing rates fairly in-line with expectations. Maintain Outperform on catalysts from more accretive capital deployment