Croesus Retail Trust

Croesus Retail Trust: Acquiring One's Mall for ¥11.6b ($140.7m), 5.2% discount to its open market value and an estimated net property income yield of 5.8%. The large-scale retail shopping complex located in Greater Tokyo has net lettable area (NLA) of 52,844 sqm, of which 99.4% is occupied and has a weighted average lease to expiry of 5.8 years. The acquisition will be financed by debt (¥6,150m), fixed rate notes (¥500m) and the remaining via a private placement of 78.9m new units at $0.915 each. The new mall raises the trust's total NLA by 27% to 251,013 sqm across seven malls in Japan, and expected to raise proforma FY14 DPU from 8.98¢ to 9¢ (+0.2%). Based on the current price, Croesus Retail Trust will be valued at 1.3x P/B and 7.3% estimated FY15 yield post acquisition, compared to SGX-listed retail REITs' average of 1.05x P/B and 5.8% forward yield.